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      Question

      The Risk of prepayments of loans and bonds and or

      premature withdrawal of deposits is called ________
      A Yield curve risk Correct Answer Incorrect Answer
      B Gap risk Correct Answer Incorrect Answer
      C Embedded Option Risk Correct Answer Incorrect Answer
      D Price risk Correct Answer Incorrect Answer
      E Reinvestment risk Correct Answer Incorrect Answer

      Solution

      The Risk of prepayments of loans and bonds and or premature withdrawal of deposits is called Embedded Option Risk

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