Q3. On DEC 1,21 a Treasury bond dealer decides to sell $50 million face value of a T-bond. The sale will take place on FEB 2, 22. On DEC 1, 21 this T-bond is trading for $102/$100 face value; its duration is 8 yrs and its yield is 11%. Also, the T-bond futures for MAR 2022 delivery is trading for 7313, its duration is 9 yrs and they yield 15%. 3.1 Use a time table to describe the hedge opened by the T-bond dealer on DEC 1,21 using the price sensitivity ratio. 3.2 Suppose that on FEB 2,22 the T-bond is trading for $97/$100 face value and the T-bond futures for MAR 2022 delivery is trading for 6207. Using the same time table you used in 3.1, show the dealer's activities on FEB 2,22 and the total cash flow with the hedge. Q4. Suppose, instead, that on FEB 2, 22 the T-bond is trading for $105/$100 face value and the T-bond futures for MAR 2022 delivery is trading for 7709. Using the same time table you used in 3.1, show the dealer's activities on FEB 2, 22 and the total cash flow with the hedge. Q3. On DEC 1,21 a Treasury bond dealer decides to sell $50 million face value of a T-bond. The sale will take place on FEB 2, 22. On DEC 1, 21 this T-bond is trading for $102/$100 face value; its duration is 8 yrs and its yield is 11%. Also, the T-bond futures for MAR 2022 delivery is trading for 7313, its duration is 9 yrs and they yield 15%. 3.1 Use a time table to describe the hedge opened by the T-bond dealer on DEC 1,21 using the price sensitivity ratio. 3.2 Suppose that on FEB 2,22 the T-bond is trading for $97/$100 face value and the T-bond futures for MAR 2022 delivery is trading for 6207. Using the same time table you used in 3.1, show the dealer's activities on FEB 2,22 and the total cash flow with the hedge. Q4. Suppose, instead, that on FEB 2, 22 the T-bond is trading for $105/$100 face value and the T-bond futures for MAR 2022 delivery is trading for 7709. Using the same time table you used in 3.1, show the dealer's activities on FEB 2, 22 and the total cash flow with the hedge