Question: MJ & Brothers Plc is required to make a $10 million payment in 2 years and a $6 million payment in 4 years. MJ &

MJ & Brothers Plc is required to make a $10 million payment in 2 years and a $6 million payment in 4 years. MJ & Brothers Plc wants to make a portfolio with bonds E and F to fund the future payments. The information on bonds E and F are in the table below. The yield curve is flat at 8% p.a. How much of each bond should the portfolio contain for the firm to be able to bear the cost of the payments even after a shift in the interest rate curve?

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