1.Due to the corona virus, the Chair of the Federal Reserve indicated this morning (Wednesday 2/26) that inflation will be lower than expected. (i)Today, would you expect short term interest rates to be higher or lower? (ii)Today, would you expect bond prices to be higher or lower? (iii) Would you expect long term interest rates to be higher or lower? Why? (iv)Explain the following observation. The current inflation rate is about 1.9% The yield to maturity on 10 year treasuries is 1.4%. Why are investors willing to invest and earn less than inflation.