Your firm is obligated to make payments to a supplier according to the following schedule: Year 1 $1.5 million Year 2 $1.75 million Year 3 $10 million You want to immunize this liability investing in some combination of a 2-year bond with a 4% coupon and a 4-year bond with a 6% coupon. You can assume these bonds pay interest annually and have a par value of $1,000. Use a discount rate / YTM of 6% throughout this problem. 

How many (in terms of numbers of bonds) of each type of bond do you need to purchase to immunize your liability?