7. You have a portfolio consisting of 25% of a 3-Year 4 % coupon (semiannual) Bond 50% of 2.5 Year 8% coupon (semiannual) Bond 25% of a I-Year 6% coupon (quarterly) Bond The following is the semiannual compounding Spot Rate curve Mat 0.25 0.5 0.75 1.25 1.5 1.75 Rate 6.33% 6.49% 6.62% 6.71% 6.79% 6.84% 6.87% Mat 2 2.25 2.5 2.75 3 3.25 3.5 Rate Only 2-Year Zeroes and 3.5-Year7% coupon (semiannual) Bonds are 6.88% available to hedge your interest rate risk. How would you immunize 6.89% your portfolio ? 6.88% 6.86% 6.83% 6.80% 6.76%