USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider two bonds: both pay annual interest. Bond Y has a coupon of 6 percent per year, maturity of five years, yield to maturity of 6 percent per year, and a face value of $1,000. Bond X has a coupon of 7 percent per year, maturity of 10 years, yield to maturity of 4 percent per year, and a face value of $1,000. Refer to Exhibit 13.13. Assume that your investment horizon is five years and your portfolio consists only of Bond Y and Bond X. Indicate the proportions invested in each bond, so that the portfolio is immunized.

a. 36 percent in Bond Y and 64 percent in Bond X

b. 100 percent in Bond X

c. 50 percent in Bond Y and 50 percent in Bond X

d. 76 percent in Bond Y and 24 percent in Bond X

e. 100 percent in Bond Y