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An Australian bank that issues US$350 M 6-year bonds to fund US$200 M loans with 5-year maturity is exposed to the following risks : An

An Australian bank that issues US$350 M 6-year bonds to fund US$200 M loans with 5-year maturity is exposed to the following risks :

An appreciation of the US dollar against the AUD plus credit risk plus reinvestment risk, i.e. deceasing interest rates.

A depreciation of the US dollar against the AUD, plus credit risk plus liquidity risk plus refinancing risk, i.e. decreasing interest rates.

A depreciation of the US dollar against the AUD plus credit plus liquidity risk plus reinvestment risk, i.e. decreasing interest rates.

An appreciation of the US dollar against the AUD, plus credit risk plus refinancing risk, i.e. increasing interest rates.

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