The problem in stretching out the maturity of marketable securities is that
A) you are legally locked in until the maturity date.
B) longer term securities are often not available.
C) there is greater possibility of loss.
D) interest rates are generally lower.

Question

Quizplus · Accepted Answer

Longer-term securities typically carry more risk due to potential interest rate changes, which can lead to a greater possibility of loss in value.

The Problem in Stretching Out the Maturity of Marketable Securities