The cost of a long-term debt generally ________ that of a short-term debt.

Name: The cost of a long-term debt generally ________ that of a short-term debt.
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Long-term debt generally involves a higher risk for the lender than short-term debt due to the longer time period of repayment and the potential for changes in interest rates and inflation. Due to this higher risk, lenders usually charge a higher interest rate for long-term debt, resulting in a higher cost than short-term debt.

The Cost of a Long-Term Debt Generally ________ That of a Short-Term