Questions 4 to 10 refer to the following information. Conyers Bank holds U.S. Treasury bonds with a book value of $30 million and a duration of 11.25 years. The U.S. Treasury bonds are currently worth $28,387,500 and yield 12%. The Bank is currently considering hedging the risk relating to these Treasury bonds by using Treasury bond futures. Treasury bond futures are currently priced at 94.20 and have a $100,000 par value. What would be the impact on the price of the US Treasury bonds (on balance sheet) if interest rate increases by 25 basis points?

A: $712,855.75 increase

B: No impact

C: $753,348.21 increase

D: $712,855.75 decrease

E: $753,348.21 decreas