Financial securities that are the same in all other ways may have differences in interest rates that reflect the differences in the ease of selling the security in the secondary market at a favorable price.

Question

Quizplus · Accepted Answer

This statement is true. The ease of selling a security in the secondary market at a favorable price is a factor that can affect its interest rate. A security that is more easily tradable and liquid will generally have a lower interest rate than a less liquid security with the same financial characteristics.

Financial Securities That Are the Same in All Other Ways