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company wishes to use financial futures to hedge its interest rate exposure. The company will sell 10 Treasury futures contracts at $9.5k per contract. It is Jul and the contracts must be closed out in Dec of this year. Long-term interest rates are currently 13.21%. If they increase to 14.78%, assume the value of the contracts will go down by 8.4%. Also if interest rates do increase by 1.86%, assume the firm will have additional interest expense on its business loans and other commitments of $5.6k. This expense will be separate from the futures contracts. Note: The term "K" is used to represent thousands (* $1,000). Required: What percent of this $5.6k cost did the company effectively hedge away? % Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%). A company wishes to use financial futures to hedge its interest rate exposure. The company will sell 10 Treasury futures contracts at $9.5k per contract. It is Jul and the contracts must be closed out in Dec of this year. Long-term interest rates are currently 13.21%. If they increase to 14.78%, assume the value of the contracts will go down by 8.4%. Also if interest rates do increase by 1.86%, assume the firm will have additional interest expense on its business loans and other commitments of $5.6k. This expense will be separate from the futures contracts. Note: The term "k" is used to represent thousands (* $1,000). Required: What percent of this $5.6k cost did the company effectively hedge away? % Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%)

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