10. A Swiss investor purchased a U.S. Treasury bond priced at 100. Its yield is 4.5 percent and the investor expects the U.S. yield to move down by 15 basis points over the year. The duration of the bond is 6. The Swiss franc cash rate is 1 percent and the dollar cash rate is 2 percent. (1) If an American investor buys the Treasury bond, what is the American investor's expected return over the year and the bond's risk premium. (2) If the Swiss investor decides to hedge using a forward contract, give a rough estimate of his expected return and risk premium.