if a bank will invest $300,000,000 in treasury bonds

  

1.if a bank will invest $300,000,000 in treasury bonds (par=price) in 3-months. the duration on the bonds is 12.5 year.a,should the bank buy or sell futures?b,if the bank hedges with $100,000 T-bond futures with a duration of 9years and a current price of 101,how many contracts does the bank need?c,if the bank hedges with $1,000,000 T-bill futures with a duration of 0.25 years., and current price of 102,and a basis of 2, how many contracts does the bank need?2,if you borrow $20,000,000 in bonds(par=price) in 3 month. The duration on the bond is 5years.a,should you buy or sell a future to hedge your interst rate risk?3.your bank will issue $40 million in 6 month CD in 1 month. what is your exposure to changing rates and what future hedge would you buy?a, you are exposed to falling rates and should buy a t-bill future.b,you are exposed to rising rates and should buy a t-bill future.c,you are exposed to falling rates and should sell a t-bill future.d,you are exposed to falling rates and should sell a t-bill future.