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Importantly, your client agreement provides you the discretion to actively vary your modified duration from 80 to 120% of that of the benchmark. Your forecast

Importantly, your client agreement provides you the discretion to actively vary your modified duration from 80 to 120% of that of the benchmark. Your forecast of market interest rates reveals an imminent decline in rates within the upcoming 3-4 months or so. To position your portfolio according to your view, you have decided to rebalance, but you do not have time to identify individual issues for purchase or sale nor do you wish to incur the liquidity costs of trading private placement holdings within your portfolio. Instead, you have decided to trade the appropriate September 5-year T-note futures contract. Describe specifically what action you should take (e.g., number of contracts, contract maturity, long or short)

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