It is now March and the current cost of debt for Basis A is 12%. Basis A plans to issue $ 5mn in 20-year bonds (with semi-annual coupons) in September, but fears that rates will rise even higher before then. The following data is available: Futures Prices: Treasury Bonds - $ 100,000; Pts. 32nds of 100%

Month	Open	High	Low	Settle	Change
(1)	(2)	(3)	(4)	(5)	(6)
Mar	96-28	97-13	97-22	98-05	+7
June	98-03	98-03	97-13	97-25	+8
Sept	97-03	97-17	97-03	97-13	+8

a. What is the implied interest rate for the September contract?

b. build a hedge for Basis A.