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A Singaporean bank makes a one-year loan to an Australian corporate borrowerat 6 percent annual interest. The loan is funded by issuing 5-year bonds in
A Singaporean bank makes a one-year loan to an Australian corporate borrowerat 6 percent annual interest. The loan is funded by issuing 5-year bonds in the US at 4 percent annual coupon rate.Currently, spot exchange rates are 1.02 Singaporean Dollar per AUD and 0.74 US dollar per Singaporean dollar. The bankis exposed to :
Group of answer choices
interest rate , foreign exchange risk and liquidity risk.
credit risk only.
interest rate risk only.
foreign exchange risk only.
interest rate risk, foreign exchange risk and credit risk.
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