Suppose that the current YTM is 8% and assume semi-annual compounding. We have a liability to pay $10,000 in 7 years. In order to construct a hedged portfolio, we can use the bonds as follows: < Compounding frequency Bond Maturity (year) Coupon rate (%) Par value YTM ($) (%) A 3 6 100 8 2 Be 6 8 100 8 20 Ce 10 40 100 8 24 Liability 70 0 10000 80 24 We want to construct an asset portfolio by purchasing bond A, B, and C in a way that the values, durations, and convexity measures of the asset portfolio match those of the liability (immunization). How many bonds do we need to buy? < Moreover, suppose that yields suddenly drop from 8% to 7%. Construct a table to check the performance of immunization.