J R T Y U 00 9 V B N M A S D F G H J Marie Z X C T O O P K L V + # { } [ " delete return shift (e) Using both duration and convexity (and/or dollar duration and dollar con- vexity), approximate the change in the value of the bank's net equity if all zero rates rise by 50 basis points. lob TO (f) When hedging using duration and convexity, the underlying assumption is that the zero yield curve moves up and down in a parallel manner. This assumption clearly does not always hold up in the data because we know that sometimes the yield curve slopes upward and sometimes it slopes downward. Explain briefly at least one approach we learned in class to deal with the potential violation of the parallel shift assumption.