Itwe Zinn Compomy plans to issue $10,000,000 of 20 -year bonds in June to help finance a new research and development laboratory. The bonds will pay interentcomiannually. It is now November, and the current cost of debt to the high-risk biotech company is 9%. However, the firm's financlal manager is concerned that nterest rotes will climb even higher in coming monthe. The following data are available: a. What is the irmplied yield on the June futures contract ($100,000 par value, 6% coupon, semiannual payment with 20 years to maturity)? Do not round intosmedlate calculotions, Round your answer to two decimal places. 4 How many futures contracts will be needed to hedge potential losses in bond procecds (based on current market conditions) due to walting? Round your arswer up to the riesrest whole number. The firm musit contract(s) to cover the planned 510,000,000 dune bond issue, What is then total value of the hedge position? Use the rounded value of the mumber of contracts. Round your answer to the nearest cent. 5 b. Assime that literest rotes in general increase by 300 bavis points: Suppose the bond's terms don't change anid that the coupon rate in still 996 . Ilow imich would Zinn fecelve fromi the bond Bside given the new makket rates? Do mot round intermedlate calculations, Pound your answer to the nearest 5. Assume that Zinn had entered the hedge found in part a. What is the new price of the hedge position? Use the rounded volue of the number of contract. from nait a Do not mund other intermediate calculations. Round your answer to the nearest cent. What is the gain on the hedge? Use the rounded value of the number of contracts from part a. Do not round other intermediate calculations. Round your anewier to the nasarist cent. What is the net effect of the loses of proceeds and the gain on the hedge? Use the rounded value of the number of contractil from part a. Do not round other intermediate calculations. Round your answer to the neareit cent, Enter your answer as a posithe value. On rent, the firm