问题如下：
Based only on Exhibits 2 and 3, it is most likely that under:
选项：
A.Scenario 1, Bond 2 outperforms Bond 1
Scenario 2, Bond 1 underperforms Bond 3.
Scenario 3, Bond 3 is the best performing security
解释：
C is correct. The change in value of a bond is inversely related to a change in yield. Given a bond priced at B with duration D and yield change of Δy, the rate of return or percentage price change for the bond is approximately given as follows: ΔB/B ≈ -DΔy/(1 + y). Under Scenario 3, interest rates decrease by 20 bps. In an environment of decreasing interest rates, the bond with the highest duration will have the greatest positive return. Bond 3 has a duration of 10.2, which is greater than that of both Bond 1 (duration = 1.3) and Bond 2 (duration = 3.7).
老师为什么yield下降, D大的更有positive return?
