You Manage a $265 Million Bond Portfolio Which Has a Duration

question 23

Multiple Choice

You manage a $265 million bond portfolio which has a duration of 7.1 years.You want to hedge this portfolio with Treasury note futures that have a duration of 7.6 years and a futures price of 116.U.S.Treasury notes futures contracts are based on a par value of $100,000 and quoted as a percentage of par.How many contracts do you need to sell to complete this hedge?

• A)1,371 contracts
• B)1,400 contracts
• C)1,550 contracts
• D)1,867 contracts
• E)2,134 contracts

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Definitions:

PR Decisions

Strategic choices made in the field of public relations to manage the perception of an organization or individual by its publics.

Employee Engagement

The emotional commitment an employee has to their organization and its goals, leading to higher performance levels.

Employee Advocacy

The promotion of a company or brand by its employees, who share their support for their company's brand, products, or services in their personal social media networks.

Task-Oriented Behavior

Actions focused primarily on completing a task or achieving a goal, often at the expense of interpersonal relationships.