20) Consider an MBS portfolio with a value of $12.5 million and an effective modified duration of 3.75 years. The investor wishes to hedge this portfolio against interest rate risk using a two-year forward contract on the 10-year treasury bond that has a modified duration of 7.69 years and a forward price of 104-00. If the investor wants to completely eliminate risk, what positions should she take in the forward contract. 21) Reconsider the information in Question 20. If instead the investor wants to reduce the portfolio duration to a target of 1.50 years. what position should she take in forward contract. 20) Consider an MBS portfolio with a value of $12.5 million and an effective modified duration of 3.75 years. The investor wishes to hedge this portfolio against interest rate risk using a two-year forward contract on the 10-year treasury bond that has a modified duration of 7.69 years and a forward price of 104-00. If the investor wants to completely eliminate risk, what positions should she take in the forward contract. 21) Reconsider the information in Question 20. If instead the investor wants to reduce the portfolio duration to a target of 1.50 years. what position should she take in forward contract