Number of contracts for dollar duration and duration

[gonowpass]

Formula 1.
Contracts to construct a hedge = (dollar duration target - dollar duration portfolio) / dollar duration future
Formula 2 a more common approach is to work directly from durations.
Contracts to construct a hedge
=[ [(Duration target - Duration Portfolio) x Portfolio value] / (duration CTD x Price CTD) ] x CTD conversion factor
Can someone please explain how we get from formula 1 to formula 2?

 

[dwheats]

What is your email.I will email you a derivation.

 

[S2000magician]

I wrote an article that may help you on this: http://financialexamhelp123.com/adjusting-the-valueduration-of-a-fixed-i...