Which of the Following Is True with Respect to Modified

Multiple Choice

Which of the following is true with respect to modified duration hedging?

A) Modified duration hedging always works as a good approximation when yields change.
B) Modified duration hedging always works except when yields changes are large.
C) Modified duration hedging can only be applied to zero-coupon bonds.
D) Modified duration hedging always works if combined with convexity hedging.
E) Modified duration hedging works only for parallel shifts in the yield curve.