2017 Exam Q9B

Can anyone explain what cash does to the money duration?

If cash is simply added to a portfolio, the market value of existing bonds doesn’t change, (duration of the bonds doesn’t change either), then the money duration of the portfolio wouldn’t change, right? because cash has duration of 0.

Does the question imply selling some bond and convert to cash?

This question is no longer relevant for the 2019 exam