A trader holds a long position (year 2020) of $1 MM of the 8 percent bond maturing 2040. The bond's modified duration is 11.14692, and it price is $129.87596. Its BPV is 0.14477. The trader decides to protect the position against a rise in interest rates by hedging it using the ZCB maturing in 2040, which has a Basis Point Value of 0.05549. Assume that the yield beta is 1.2. What nominal value of the zero coupon bond must the trade sell? To hedge $1 MM of the 20 year bond, the trader must long $3,130,726 of the zero coupon bond. To hedge $1 MM of the 20 year bond, the trader must short $3,130,726 of the zero coupon bond. To hedge $1 MM of the 20 year bond, the trader must short $2,608,940 of the zero coupon bond. To hedge $1 MM of the 20 year bond, the trader must long $2,608,940 of the zero coupon bond