The Zinn Company 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 interest se now November, and the current cost of debt to the high-risk biotech company is 13%. However, the firm's financial manager is concerned that interest rates will coming months. The following data are available: Futures Prices: Treasury Bonds - $100,000; Pts. 32nds of 100% Delivery Month Open High Low Settle Change Open Interest (1) (2) (3) (4) (5) (6) (7) 94 280 95130 94'220 95'050 +0'070 591,944 96030 96'030 95130 95250 +0'080 120,353 June 95030 95'170 95'030 95170 +0080 13,597 a. What is the implied yield on the June futures contract ($100,000 par value, 6% coupon, semiannual payment with 20 years to maturity)? Do not round inte calculations, Round your answer to two decimal places % Dec Mar How many futures contracts will be needed to hedge potential losses in bond proceeds (based on current market conditions) due to waiting? Round your an nearest whole number. The firm must Select contract(s) to cover the planned $10,000,000 June bond issue. What is the total value of the hedge position? Use the rounded value of the number of contracts. Round your answer to the nearest cent. $ b. Assume that interest rates in general increase by 300 basis points. Suppose the bond's terms c't change and that the coupon rate is still 13%. How much proceeds be given the new market rates? Do not round Intermediate calculations. Round your answer to the nearest cent. 5 What is the loss in proceeds based on the original target for proceeds? Do not round intermediate culations. Round your answer to the nearest cent. Enter as a positive value $ c. Assume that Zinn had entered the hedge found in part a What is the new price of the hedge position? Use the rounded value of the number of contracts from not round other intermediate calculations, Round your answer to the nearest cent. 5 What is the gain on the hedge? Use the rounded value of the number of contracts from part a. Do not round other intermediate Cestions. Round your answe nearest cent $