7. (20 points) Suppose you face the following stream of cash obligations (liabilities) over the next ten years, where the numbers denote thousands of dollars: Maturity 0 1 3 4 5 6 7 8 9 10 2 - 100 200 100 1500 300 200 230 400 1300 1200 As there are not zero coupon bonds available for all maturities, you plan to invest in a portfolio of coupon paying bonds with the same value and interest risk for an approximate hedge.2 You decide to invest in two bonds: 2Immunisation via duration hedging will only protect against small (parallel) changes in yields (whereas cash-matching, i.e. investing in zero coupon bonds that have maturities and notional exactly matching each year's obligation, will hedge against any changes in interest rates/yields).