Suppose there are two bonds, a 10-year zero coupon bond and a 2-year zero coupon bond. Currently, the discount rate, y, is 4%. Suppose we are short $1000 in par value of the 10-year zero coupon bond....

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Extracted text: Suppose there are two bonds, a 10-year zero coupon bond and a 2-year zero coupon bond. Currently, the discount rate, y, is 4%. Suppose we are short $1000 in par value of the 10-year zero coupon bond. How much of the 2-year zero coupon bond do we need to buy to be approximately immunized from changes in interest rates?