02 . On DEC 1, 03 a Treasury bond dealer decides to sell $50 million face value of T-bonds. The sale will take place on FRB 1, 04. On DEC 1. 03 this T-bond is trading for $102f$100 face value; its duration is Byrs and its yield is 11%. Also, the T-bond futures for MAR 04 delivery are trading for ?3-13, their duration is 9yrs and they yield 15%. 2. 1 Use a time table to describe the hedge opened by the T-bond dealer on DEC 1, 03 using the price sensitivity ratio. 2.2 Suppose that on FEB 2. 04 the T-bond is trading for $91r$1oo face value and the T-bond futures for MAR 04 delivery is trading for 62 - 07. Using the same time table you used in 5.1. show the dealer activities on FEB 2, 04 and the total cash ow. 2.3 Suppose that on FEB 2. 04 the T-bond is trading for $105f$100 face value and the T-bond futures for MAR 04 delivery is trading for 1'? - 09. Using the same time table you used in 5.1, show the dealer activities on FEB 2, 04 and the total cash ow