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  3. the market value of the bond portfolio of an austr

The market value of the bond portfolio of an Australian investment fund is $75 million....

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Accounting

The market value of the bond portfolio of an Australian investment fund is $75 million. The duration of the portfolio is 9. Based on the analysis provided by the inhouse economists, the portfolio manager believes that the interest rates are likely to have an unexpected shift over the next month. Based on this belief, the manager has decided to change the duration of its entire bond portfolio to 8. The futures contract it would use is priced at $130,000 and has a duration of 9.35. Assume that the conversion factor for the futures contract is 1.1. What actions should the manager take to change the duration of its entire bond portfolio to 8?Select one:O a. Should BUY 28 futures contracts to change the duration of the bond portfolio$1,000,000O b. Should BUY 68 futures contracts to change the duration of the bond portfolio O c. Should SELL 7 futures contracts to change the duration of the bond portfolio O d. Should SELL 68 futures contracts to change the duration of the bond portfolio O e. Should SELL 120 futures contracts to change the duration of the bond portfolio

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