A portfolio manager owns RM5 million par value of bond ABC. The bond is trading at 70 and has a modified duration of 6. 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 3.5.

a) Calculate the dollar duration of bond ABC per 150-basis-point change in yield. b) Compute the dollar duration for the RM5 million position of bond ABC. c) Determine how much in market 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. d) Decide 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.