1. Suppose an investor currently holds two bonds. One is a ve-year bond with a 5% coupon rate and annual coupons. This bond's yield to maturity is 6%. The other is a 2- year bond with a 9% coupon rate and annual coupons, whose yield to maturity is 5%. The current values of investment in the rst and second bonds are $ 1 million and $ 2 million, respectively. If the investor wants to use a 3year zerocoupon bond and a 4 year zerocoupon bond to hedge his position in interest rate risk, what can he do