A manager is holding a bond portfolio worth $18 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 7 years. How many dollars worth of T-bonds should she sell to minimize the variance of her position?

A manager is holding a bond portfolio worth $18 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 7 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.) X Answer is complete but Dollars' worth of T-bonds to be sold