** DO NOT COPY AND PASTE ANSWERS FROM SIMILAR QUESTIONS POSTED ON THE INTERNET. PARTS B) ARE BOTH WRONG.

a) Use the given data to create a hedge against rising interest rates. Round your answer to the nearest whole number.The firm must sell contract(s) to cover the planned $10,000,000 June bond issue.

b) Assume that interest rates in general increase by 100 basis points. How well did your hedge perform? (i.e., What is the net gain or loss?)Hint:Use settlement price in your evaluations. A net loss should be indicated with a minus sign. Do not round intermediate calculations. Round your answer to the nearest dollar.

On net the firm gained $   .