B Pts 1. Hedging: A portfolio Manager has a $25 million position in TSLA 5-year bonds priced at $104-17 with a modified duration of 4:38. To hedge this position the manager wishes to create a short position in a Treasury note with 5 years to maturity priced at $99-30 with a modified duration of 4.95 Both bonds are priced at the beginning of an accrual period, le no accrued interest a) What is the DV01 per $1 million for the TSLA bond? b) What is the DV01 per $1 million for the Treasury note? c) What is the face amount of Treasures the manager will sell to make the portfolio duration neutral? 2 3 3