FinTech Corp. has an existing short-term borrowing facility of $5 million that it needs to roll-over in 75 days. Being concerned with rising rates, the CFO enters a 90-day bills futures position at 94.75 maturing at the intended roll-over date. At maturity, the futures closes at 94.50.

1) The CFO enters a ____ position in the futures contract for ___ contracts.

2) Compute the price of one futures contract at the time that the CFO enters the position

3) Compute the holding period return for the company's hedge position at maturity (in percent; be mindful of the sign)

4) Compute the P/L that arises from the hedge position (enter losses with a minus sign)

5) FinTech Corp. is able to roll over its facility at a yield of 5.93%. Compute the effective new borrowing cost (in percent) taking into account the effect of the hedge (HINT: You can save a lot of time here by remembering the short cut calculation for simple interest instruments!)