Hurricanes Katrina and Rita made landfall in Florida and Louisiana in 2005. Total damages were $160 billion. As a result, property and casualty insurers (P&C) had to sell fixed income securities to meet a gigantic loss of $41 billion of filed claims. Suppose their portfolio consists of only T-bills and long-term corporate bonds. The incidence will most likely make their portfolio duration:

Group of answer choices

remain unchanged, all else constant.

increase, all else constant.

decrease, all else constant.

become indeterminate, all else constant.