Data Given:

Problem Inputs:

Size of planned debt offering = $20,000,000

Anticipated rate on debt offering = 10%

Maturity of planned debt offering = 20

Number of months until debt offering = 5

Settle price on futures contract (% of par) = 94.78125%

Maturity of bond underlying futures contract = 20

Coupon rate on bond underlying futures contract = 6%

Size of futures contract (dollars) = $100,000

The interest rates fall by 300 basis points.

Change in interest rate on debt offering (basis points) is -300 (Given)

What is the value of issuing at new rate interest? ______

What is the Dollar value savings or cost from issuing debt at the new rate? ____

What is the new yield on futures contract? _____

What is the new value of each futures contract? _______

What is the value of all the futures contract at new yield? ______

What is the dollar change in value of the futures position? ______

Please show me all the steps for each question