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Question 2 7.5 Points You will be paying $25,000 a year at the end of the next four years. Bonds currently yield 6% per annum.

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Question 2 7.5 Points You will be paying $25,000 a year at the end of the next four years. Bonds currently yield 6% per annum. One-year zero coupon bonds cost $943.40 and six-year, coupon paying bonds with a coupon rate of 4.5% (paid annually) and a duration of 5.36 years cost $926.24 (Face value of $1,000 per bond). Construct a bond portfolio to fully fund and immunize your tuition obligation How many zero-coupon bonds and how many coupon-paying bonds will you purchase? Round your answer to the nearest full number, i.e. 47.31 = 47 bonds

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