5. Chris requires a 10% return on an investment. If he expects inflation to be 2% in the coming year, calculate the expected real return on the investment. 6. As a strategist in a bond mutual fund, you are in charge of researching and recommending bond investments to the fund manager. Suppose you expect the FOMC will raise the key interest rate in the upcoming meeting. You are thinking about investing in one of the following three Treasuries: Treasury A has a duration of 3.5; Treasury B has a duration of 4; Treasury C has a duration of 5. If the appropriate discount rate is 1%, which Treasury would you choose to buy or short (i.e., do short-selling)? Why