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The company expects to invest approximately $1 millionin three months in corporate bonds. The current rate of interest is 6.80%. To hedge the position, the

The company expects to invest approximately $1 millionin three months in corporate bonds. The current rate of interest is 6.80%. To hedge the position, the company wishes to use 3 year Treasury bond futures contracts trading at 96.300. Calculate the profit or loss from the position in futures market if in 3 months the contracts are trading at 94.100.

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