As the Duration of a Loan Increases,_____

As the duration of a loan increases,_____

A) lenders require a lower interest rate because of lower risk.
B) lenders require a higher interest rate to compensate for the greater risk.
C) the administration costs, as a proportion of the loan size, increase.
D) the administration costs, as a proportion of the loan size, decrease.
E) the federal income tax rate decreases.