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A portfolio manager owns $25 million par value of bond ABC. The bond is trading at 80 and has a modified duration of 7.5. The

A portfolio manager owns $25 million par value of bond ABC. The bond is trading at 80 and has a modified duration of 7.5. The portfolio manager is considering swapping out of bond ABC and into bond XYZ. The price of this bond is 85 and it has a modified duration of 5.5.

How much in par value of bond XYZ should be purchased so that the dollar duration of bond XYZ will be approximately the same as that for bond ABC?

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