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