Question: Hello please assignment due in 1h30 help Consider a 1-factor parallel yield shift model with a flat structure of forward rates y. How the increase

Hello please assignment due in 1h30 help

Consider a 1-factor parallel yield shift model with a flat structure of forward rates y. How the increase in y affects the Duration of zero-coupon bonds?

A) Increase

B) Decrease

C) Has no effect

D) None of the above: the exact answer (A), (B), or (C) depends on the time to maturity and face value of the bond

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