Explain the exchange rate risk

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Reference no: EM131980759

1. Springfield Nuclear Energy Inc. bonds are currently trading at $1,115.171 he bonds have a face value of ?$1,000?, a coupon rate of 4.5?% with coupons paid? annually, and they mature in 15 years. What is the yield to maturity of the?bonds? The yield to maturity of the bonds is nothing?% (Round to two decimal?places.)

2. GE bids on contract on January 1 but will not know until April 1 if its bids is accepted, making a E10 million receivable on December 31 uncertain. Explain the exchange rate risk and how you could hedge the risk.

Reference no: EM131980759

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