November 1". You are planning on issuing $8,000,000 of bonds in June to help fund a new Your current cost of debt is 9%; however, you are afraid that rates will rise by the time you Today is November 14. You project. Your current cos issue your bonds. BOND: 9% coupon, semiannual payments 20-year maturity Bonds to be issued at par FUTURES PRICES: Treasury Bonds, $100,000 face value 6% coupon, semiannual payments 20-year maturity price expressed in 32nds DEL Dec Mar Jun OPEN HIGH LOW SETTLE 94-28 95-1394-22 95-05 96-03 96-03 95-13 95-25 95-03 95-17 95-03 95-17 a) Create a hedge against rising interest rates. b) How well does your hedge perform if rates rise 150 basis points? c) How well does your hedge perform if rates fall 100 basis points? November 1". You are planning on issuing $8,000,000 of bonds in June to help fund a new Your current cost of debt is 9%; however, you are afraid that rates will rise by the time you Today is November 14. You project. Your current cos issue your bonds. BOND: 9% coupon, semiannual payments 20-year maturity Bonds to be issued at par FUTURES PRICES: Treasury Bonds, $100,000 face value 6% coupon, semiannual payments 20-year maturity price expressed in 32nds DEL Dec Mar Jun OPEN HIGH LOW SETTLE 94-28 95-1394-22 95-05 96-03 96-03 95-13 95-25 95-03 95-17 95-03 95-17 a) Create a hedge against rising interest rates. b) How well does your hedge perform if rates rise 150 basis points? c) How well does your hedge perform if rates fall 100 basis points