(a) An investor currently holding $1 million in long-term Treasury bonds becomes concerned about increasing volatility in interest rates. She decides to hedge her risk using Treasury-bond futures contracts. Should she buy or sell such contracts?

(b) The Treasurer of a corporation that will be issuing bonds in three months also is concerned about interest rate volatility and wants to lock in the price at which he can sell 8 percent coupon binds. How would he use Treasury-bond futures contracts to hedge his firms position?