Answer Happy

Consider a corporate bond with 10 year until
maturity, trading at par (M=100,000). The modified
duration of this bond is 14.2 periods. Also consider a Treasury
bond with 7 years until maturity. The modified duration of the
Treasury bond is 11.3 periods. Suppose you want to buy the
corporate bond and hedge its interest risk with a short position in
the Treasury bond, what is the market value of your short
position?
A.
125,664
B.
143,183
C.
113,638
D.
100,000