One of the features of using only modified duration for estimating change in price is that the size of the estimated price change is:
　　A. the same for up or down movements in interest rates.
　　B. higher for an up move in interest rates as compared to a down move in interest rates.
　　C. lower for an up move in interest rates as compared to a down move in interest rates.
　　D. higher for a callable bond as compared to an option-free bond.
　　Answer:A
　　Estimated price changes using only duration are symmetric for a change in interest rates. How the modified duration for a callable bond would compare with an otherwise identical option-free bond will depend upon the relevant range over which the measure would be calculated. If the relevant range includes a range in which the callable bond will experience price compression, the effective duration measure for the callable bond will be lower than for the option-free bond.