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Hello, I'd appreciate it if you can help me with this problem! Summa Corp. must pay floating rate interest three months from now on a

Hello, I'd appreciate it if you can help me with this problem!

Summa Corp. must pay floating rate interest three months from now on a loan of $1m. It wants to lock in these interest payments with an interest rate futures contract. Interest rate futures for three months from now settled at 94.65, for a yield of 5.35% per annum.

a. Should Summa Corp. buy or sell a futures contract?

b.If the floating-rate interest three months from now is 6.00%, what did Summa gain or lose on the futures contract and on its overall position (loan + futures contract)?

cIf the floating-rate interest three months from now is 5.00%, what did Summa gain or lose on the futures contract and on its overall position (loan + futures contract)?

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