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What are the cost and benefit of borrowing with a 1-day maturity, as opposed to a 1-year maturity? Cost: more refinancing risk Benefit: higher leverage

image text in transcribed What are the cost and benefit of borrowing with a 1-day maturity, as opposed to a 1-year maturity? Cost: more refinancing risk Benefit: higher leverage Cost: higher transaction costs Benefit: higher leverage Cost: higher transaction costs Benefit: lower cost of borrowing Cost: more refinancing risk Benefit: lower cost of borrowing

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