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A manager is holding a bond portfolio worth $10 million with a modified duration of 5 years. She would like to hedge the risk of
A manager is holding a bond portfolio worth $10 million with a modified duration of 5 years. She would like to hedge the risk of the portfolio by short-selling Treasury bonds. The modified duration of T-bonds is 6 years. How many dollars' worth of T-bonds should she sell to minimize the variance of her position? (Enter your answer in dollars not millions rounded to the nearest dollar value.) Dollars' worth of T-bonds to be sold
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