The problem in stretching out the maturity of marketable securities is that
A)you are legally locked in until the maturity date.
B)longer-term securities are often not available.
C)there is a greater possibility of loss.
D)interest rates are generally lower.

Question

Quizplus · Accepted Answer

Longer-term securities carry more risk due to interest rate fluctuations, which can lead to a greater possibility of loss if the securities need to be sold before maturity.

The Problem in Stretching Out the Maturity of Marketable Securities