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A manager is holding a bond portfolio worth $13 million with a modified duration of 8 years. She would like to hedge the risk of
A manager is holding a bond portfolio worth $13 million with a modified duration of 8 years. She would like to hedge the risk of the portfolio by short-selling Treasury bonds. The modified duration of T-bonds is 9 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.)
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