Today a firm decides it will satisfy a predicted short-term financing need by issuing $24,000,000 in 120-day commercial paper on August 23. The firm has decided to hedge the interest rate risk between now and the issue using the September Eurodollar contract ($1,000,000 contract size on 90 day instrument). The 120-day commercial paper discount quote today is 5.37. The Sept. Eurodollar quote today is 5.13. Calculate the size and type (buy or sell) of futures position to hedge the issue. If on August 23 the firm issues the 120-day commercial paper at a quote of 5.87 and the September Eurodollar position is closed at a quote of 5.73, what is the effective rate the firm will pay on the commercial paper issue?