Question: A 100 par value treasury note maturing in 10 years pays a 4% coupon and is priced at 100. The 10 year treasury note futures

A 100 par value treasury note maturing in 10 years pays a 4% coupon and is priced at 100. The 10 year treasury note futures are priced at 90 and settle in 3 months. An investor short sells the bond, uses the proceeds to invest in a 3 month CD at 4% and purchases the futures contract. What is this investment strategy's net cash flow after 3 months. What is the theoretical futures price?

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