Everything else being equal, most investors prefer __________ securities, while most bond issuers prefer to issue __________ securities.
A) short-term; long-term
B) long-term; long-term
C) short-term; short-term
D) long-term; short-term

Question

Quizplus · Accepted Answer

Most investors prefer short-term securities due to their lower risk and greater liquidity, while most bond issuers prefer to issue long-term securities to lock in current interest rates for a longer period and reduce the frequency of needing to refinance.

Everything Else Being Equal, Most Investors Prefer __________ Securities, While