For the following scenarios, describe a hedging strategy using futures contracts that might be considered.

1. Marshall Arts has just invested $1 million in long-term Treasury bonds. Marshall is concerned about increasing volatility in interest rates. He decides to hedge using bond futures contracts. Should he buy or sell such contracts?

2. The treasurer of Zeta Corporation plans to issue bonds in three months. She is also concerned about interest rate volatility and wants to lock in the price at which her company could sell 5% coupon bonds. How would she use bond futures contracts to hedge?