Zinn Company: Hedging interest rate risk using t-bond futures 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 semiannually. It is now November, and the current cost of debt to the high-risk biotech company is 11%. However, the firm's financial manager is concerned that interest rates will climb even higher in coming months. The following data are available: Futures price: Treasury Bonds- $100,000; pts- 32nds of 100 Delivery mo Open High Low Settle Change Open Interest December 94-28 95-13 94-22 95-05 +7 591,944 Mar 96-03 96-03 95-13 95-25 +8 120,353 June 95-03 95-17 95-03 95-17 +8 13,597 Suppose interest rates fall by 200 basis points. What is the dollar savings from issuing the debt at the new interest rate