Hedge the risk of portfolio by short-selling treasury bonds

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A manager is holding a $1.4 million bond portfolio with a modified duration of 7 years. She would like to hedge the risk of the portfolio by short-selling Treasury bonds. The modified duration of T-bonds is 8 years. How many dollars' worth of T-bonds should she sell to minimize the risk of her position? (Enter your answer in dollars not in millions.) Worth of T-bonds $

Reference no: EM131336223

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