Calculate the change in the banks market value of equity and the change in the value of the T-bond futures position for the bank if interest rates increase by 0.55 percent from the current rate of 6 percent on the T-bond and increase 0.65 percent from the current rate of 8 percent on the balance sheet assets and liabilities.

Calculate the correct number of futures contracts needed to hedge the banks interest rate risk (do not round to the nearest whole contract). Make sure you specify whether you should enter the hedge with a short or long futures position.

N_f== futures contracts

Integrated Mini Case HEDGING INTEREST RATE RISK WITH FUTURES CONTRACTS Use the following December 31, 2021, market value balance sheet for Bank One to answer the questions below. 14.25x$108,312.50x.0885DL[(TATL)xDL]TotalAssets Integrated Mini Case HEDGING INTEREST RATE RISK WITH FUTURES CONTRACTS Use the following December 31, 2021, market value balance sheet for Bank One to answer the questions below. 14.25x$108,312.50x.0885DL[(TATL)xDL]TotalAssets