Which of the following is NOT a common characteristic of issuing long-term debt?
A)Issuing long-term debt decreases uncertainty compared to a short-term fixed-rate issue.
B)Issuing long-term debt provides more frequent financing opportunities.
C)Long-term interest rates are typically HIGHER than short-term rates.
D)Long-term debt may be preferred because short-term debt financing could be problematic in the event of an economy-wide liquidity crisis.

Question

Quizplus · Accepted Answer

Issuing long-term debt does not typically provide more frequent financing opportunities compared to short-term debt. Short-term debt may be rolled over more frequently, providing more opportunities for refinancing.

Which of the Following Is NOT a Common Characteristic of Issuing