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The risk premium that compensates investors for the risk of not getting paid by the issuer is called the... A. Inflation premium B. Default-risk premium

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The risk premium that compensates investors for the risk of not getting paid by the issuer is called the... A. Inflation premium B. Default-risk premium C. Interest-rate risk premium D. Market risk premium E. None of the above Three years ago you purchased a $1,000 par bond with a 5% semi-annual coupon and 9 years to maturity at par. Today, you sold the bond at a price of $915. What was the yield to maturity when you sold the bond? A. 6.75% B. 8.26%DOO C. 6.25% D. 5.00%

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