You Own a $15 Million Bond Portfolio with a Modified

question 70

Multiple Choice

You own a $15 million bond portfolio with a modified duration of 11 years and you want to limit your risk but institutional constraints prohibit trading the bond portfolio.T-bond futures are available with a modified duration of the deliverable instrument of 8 years.The futures are priced at $105,000.The proper hedge ratio to use is ______.

• A) 104
• B) 143
• C) 196
• D) 213

---

Definitions:

Intellectual Assets

Intangible resources of an organization such as patents, trademarks, business methodologies, and trade secrets that provide a competitive edge.

Workplace Knowledge

The valuable information, skills, and expertise that employees possess within the context of their job and organization.

Organizational Positions

Specific roles or job titles within an organization, each with its own set of responsibilities and expectations.

Productive Results

Outcomes or deliverables that are effectively and efficiently achieved, contributing to the goals of an organization or individual.