Question

A bank borrows Rs.50 crore from call money market on a daily basis. It invests in 5-year Government of India bonds with YTM of 7.10% having market value of Rs.40 crore. The bank plans to sell these bonds within 20 days. The bank faces the following risk in this case?

A Market risk
B Gap risk
C Operational risk
D Funding risk
E Credit Risk
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