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15) (A) What is the yield to maturity on a corporate bond given the following information: bond matures in 20 years coupon rate = 7%

15)

(A) What is the yield to maturity on a corporate bond given the following information: bond matures in 20 years coupon rate = 7% APR compounded semi-annually, paid semi-annually face value = $1000 bond price = $763.51

(B) In our class, we discussed two types of risks faced by bondholders. What are these two risks, and how could bond investors lower or eliminate each type of risk?

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