It is July 1st. You are the treasurer of a large corporation which needs to issue a $1,000,000,000 corporate bond in the middle of September. The bond will have a ten year term and a duration of 6.1. You are really worried about this bond issue because interest rates have been so volatile. You decide to hedge the issue using the T-Note futures contract traded on the CME. If the September T-Note futures contract is quoted at 129-25 and currently has a cheapest-to-deliver bond with a duration of 6.8, then what would could this company's hedge look like

Question 16 options:

	Short 6,940 contracts
	Long 6,912 contracts
	Short 6,912 contracts
	Long 6,940 contracts