It is not necessary to understand interest rate movements when deciding the structure of short-term debt relative to long-term debt.

Question

Quizplus · Accepted Answer

Understanding interest rate movements is important when deciding the structure of short-term debt relative to long-term debt. If interest rates are expected to rise, it may be more advantageous to take out long-term debt to lock in a lower interest rate. On the other hand, if interest rates are expected to decrease, it may be better to take out short-term debt to take advantage of lower rates in the future.

It Is Not Necessary to Understand Interest Rate Movements When