Suppose you own a portfolio of one hundred 2-year 5% coupon bonds and two hundred 3-year 6.5% coupon bonds. You would like to immunize your portfolio...

Suppose you own a portfolio of one hundred 2-year 5% coupon bonds and two hundred 3-year 6.5% coupon bonds. You would like to immunize your portfolio against small changes in interest rates. You decide to immunize with T-bill futures. These futures contracts are for the delivery of $10,000 face value of T-bills having 90 days remaining to maturity. The interest rates are expected to be at 10%. What position do you take in futures, short or long? How many contracts are in your position?