You work in the treasury department for a major manufacturer. You are instructed to build a bond portfolio that will fully insulate the investment from movements in interest rates for a capital investment the company will be making in 5.25 years. You can assume that the market weighted average duration of the bond investment is correct. The capital investment will total $25,000,000. These bonds are selected because they make QUARTERLY interest payments. You can build the portfolio using these three different bonds:

- seven year zero coupon treasuries bonds, current YTM 3.85%, up to $20,000,000

- six year corporate junk bonds, coupon of 9.70%, YTM 8.45%, up to $20,000,000

- six year emerging market bonds, coupon of 6.20%, YTM 5.35%, up to $20,000,000

Given this information what is the goal (solution) for this problem. In other words, what would allow you to achieve your mission?