FULL PRODUCT VERSION :
java version "1.7.0_45"
Java(TM) SE Runtime Environment (build 1.7.0_45-b18)
Java HotSpot(TM) 64-Bit Server VM (build 24.45-b08, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Windows 7 Enterprise x64

A DESCRIPTION OF THE PROBLEM :
Consider the following method:

  void foo(Throwable error) throws InterruptedException
  {
    throw (error instanceof InterruptedException ? (InterruptedException)error : new RuntimeException(error));
  }

Java compiler reports the following error on the "throw" line:

Error:(...) java: unreported exception java.lang.Exception; must be caught or declared to be thrown.


STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Create class with the following method and try to compile it:

  void foo(Throwable error) throws InterruptedException
  {
    throw (error instanceof InterruptedException ? (InterruptedException)error : new RuntimeException(error));
  }


EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
No compiler error.
ACTUAL -
Compiler error on the "throw" line:

Error:(...) java: unreported exception java.lang.Exception; must be caught or declared to be thrown.

ERROR MESSAGES/STACK TRACES THAT OCCUR :
Error:(...) java: unreported exception java.lang.Exception; must be caught or declared to be thrown.

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
  void foo(Throwable error) throws InterruptedException
  {
    throw (error instanceof InterruptedException ? (InterruptedException)error : new RuntimeException(error));
  }
---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
If code is refactored as the following, the compiler does not throw an error:

  void foo(Throwable error) throws InterruptedException
  {
     if(error instanceof InterruptedException)
       throw (InterruptedException)error;
   
     throw new RuntimeException(error);
  }