Assume that all bonds pay annual coupons and have par values of $1,000 unless otherwise stated.

4. You are constructing a portfolio to immunize a $22.0 million cash flow that occurs three years from today. You have a bond (X) with a duration of 1.65 and a quoted price of 97.355 and a bond (Y) with a duration of 5.16 and a quoted price of 88.420. The interest rate is 6.0% on all bonds. 6 pts a. What will be the value today of your immunization portfolio? b. What will be the weights of the two bonds in the immunization portfolio? c. How many Y bonds will be in the portfolio? d. If the $22.0 million cash flow were four years from today, what would be the weights of the immunization portfolio, and how many X bonds would be in the portfolio