Rated A$3$ by Moody$$s$,$ General Electric $5\mathrm{.}875$ of $1/14/38$ US corporate bond trades at a $106\mathrm{.}20$ price and at a yield of approximately $5\mathrm{.}203757\%$ for settlement April $3/2025.($Note: US corporate issues use $30-$day months over a $360-$day year to calculate interest.$)$

$$ With $79$ days accrued interest, what is the invoice settlement amount for a face value of $$1,000,000$ purchase? What is the duration of the bond?

$$ GE $10-$year CDS trades at $70$ basis points, the GE $57/8$ of $1/14/38$ trades at a spread of $102$ basis points over the reference U$.$S Treasury Note, the $4\mathrm{.}375\%$ of $02/15/38.$

$$ What instruments would you use to hedge both the interest rate and credit risk?

$$ What hedge ratio would be used to close the interest rate GAP on this investment if the ten$-$year T$-$note future has a duration of $5\mathrm{.}84$ years for the cheapest to deliver treasury note, the $4\mathrm{.}50\%$ of $12/31/31?$