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Koa, who lives in Kapolei, Hawaii, purchased three bonds from a company based in North Dakota that were yielding 8.5% and paid a 7% coupon,

Koa, who lives in Kapolei, Hawaii, purchased three bonds from a company based in North Dakota that were yielding 8.5% and paid a 7% coupon, semi-annually. The company went bankrupt and Koa never received her money. What type of risk caused Koas loss?

A.Exchange rate risk. B.Default risk. C.Interest rate risk. D.Executive risk.

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