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Premature payment of a term loan is 'Interest Rate Risk' of type (i)Basis risk (ii)Yield curve risk (iii)Embedded option risk (iv)Mismatch risk

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/03
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(iii)    Embedded option risk

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