I am interested in using the 10 year Treasurey Note futures traded on
the CBOT (Chicago Board of trade) to "hedge" my long-term borrowing
needs.  A business expansion, taking place over the next 12 months and
costing around $350,000 is my main interest, but we also have existing
debt of around $1.8 million.  I find long  term rates very attractive
right now and want to attempt to lock them in on the expansion debt. 
I am involved in agriculture and we work with a lending organization
where are interest rates are based off the 10 year note, so we have a
pretty true hedge I think.

I am familiar with hedging agriculture products
(corn/soybeans/cattle), so I don't need a hedging/futures tutorial. 
What I need is a better understanding of  the correlation between
treasury notes and interest rates.  I see the 10 year note is
currently about 112, and a yahoo chart puts the interest rate at a
little over 4% -- how does this calculation work.  And say I sell 1 10
year note futures contract, what is my profit/loss if interest rates
move up or down 2%?