Although interest rates are generally higher on long-term debt, using more long-term debt rather
than short-term debt can reduce the risk of illiquidity and decrease uncertainty related to interest
rate changes.
Indicate whether the statement is true or false
TRUE
Business
You might also like to view...
When using the load-distance method to select a new location, the decision maker can represent the number of trips to be made, the number of customers needing a physical presence, or number of tons per week, among other measures, as loads
Indicate whether the statement is true or false
Business
Suppose the 1-year nominal interest rate in Zooropa is 9%, and Zooropa's expected inflation rate is 4%. What is the real interest rate in Zooropa?
What will be an ideal response?
Business