Question 4. (20 points) The Marcus Corporation plans to issue $10,000,000 of 20-year bonds next June, with semiannual interest payments. The company's current cost of debt is 12 percent. However, the firm's financial manager is concerned that interest rates will increase in coming months, and has decided to take a short position in U. S. government t-bond futures. The following settle data are available for t-bond futures.
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