Bakshi is a Bond Portfolio Manager , who has portfolio of $40 million under investment which
are partly financed by debt of $17 million.
Bakshi had a strong belief over the last few years of a decrease in interest rates and hence
also took a long Tbond futures position equivalent to $8 million of bond contracts.
if ED of bonds is 5.1 , the future has ED of 6.2 and debt has ED of .07 calculate ED of
overall combined portfolio for 100bps decrease in Interest rates