The length of the maturity on a bond offering affects its cost. In general, the longer the maturity, the lower the cost.

Question

Quizplus · Accepted Answer

In general, the longer the maturity of a bond offering, the higher the cost. This is because there is a greater risk of inflation and default over a longer period of time, which increases the perceived risk for investors, leading to higher interest rates and a higher cost of borrowing for the issuer.

The Length of the Maturity on a Bond Offering Affects