Question: For each $ 1 , 0 0 0 face value of the 1 0 . 6 2 5 % bond, how much to go long

For each $1,000 face value of the 10.625% bond, how much to go long and how much
of the 4.25% to go short to construct a portfolio that was neutral to interest rate changes?
PV0110.625%=0.0741; PV014.25%=0.0625
Market price of 10.625% bond =141.8281 plus accrued interest of $23.68
Market price of 4.25% bond =105.9688 plus accrued interest of $0.947

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