A portfolio manager wants to exchange one bond in a portfolio for another. The old bond position has a market value of 6.5 million, a price of $81.90 per $100 of par value, and a duration of 4.33. The new bond has a duration of 4.33 and a price of $85.52 per $100 of par value.

What is the total market value of the new bond that the portfolio manager must buy in order to keep the same portfolio duration?

Correct Answer: 6,500,000