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. It is April 2. A fund manager responsible for a $20 million bond portfolio decides to hedge the value of the bond portfolio with

. It is April 2. A fund manager responsible for a $20 million bond portfolio decides to hedge the value of the bond portfolio with Treasury bond futures traded on the CME. The quoted price for the June Treasury bond futures is 150. Given a duration of the portfolio of 10, and a duration of the cheapest to deliver bond of 14, how many futures contracts should the manager sell to hedge the portfolio against interest rate risk?

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