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Suppose you hold $75 million face of a government bond trading near par, and you do not want to lose more than $2 million. Suppose

Suppose you hold $75 million face of a government bond trading near par, and you do not want to lose more than $2 million. Suppose your bond has a BPV of $2,500 per million face. What is the maximum interest rates could rise before you exceed your maximum loss? Estimate the maturity of your bond and make a suggestion as to how you could reduce the risk of your position.

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