a.) A portfolio manager of a long-term bond fund is worried that long-term interest rate might increase in the next few months, which will reduce the fund value. How could he use the T-Bond futures contract to hedge the rise in yield? b.) Currently, the T-Bond futures contract has a quote of 118-08, with a notional of $100,000. The CTD bond is an 8% 25-year bond with a duration of 15 years. The value of the bond portfolio is $20 million, with duration of 7 years. How many T-Bond futures contract should he take position in? Should he buy or sell?