Tree Row Bank has assets of $150 million, liabilities of $135 million, and equity of $15 million. The asset duration is six years and the duration of the liabilities is 4 years. Market interest rates are 10 percent. Tree Row Bank wishes to hedge the balance sheet with treasury bond futures contracts, which currently have a price quote of $95 per $100 face value for the benchmark 20-year, 8 percent coupon bond underlying the contract, a market yield of 8.5295 percent, and a duration of 10.3725 years.

e) What additional issues should be considered by the bank in choosing between T-bond or T-bill futures contracts?