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Which of the following statements is most correct ? A A borrowers long-term debt typically has a higher interest rate than its short-term debt. B
Which of the following statements is most correct?
A | A borrowers long-term debt typically has a higher interest rate than its short-term debt. |
B | Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt. |
C | Variable (floating) rate debt is more prevalent when long-term borrowing rates are low. |
D | Variable (floating) rate debt should never be used by healthcare providers because it is too risky. |
E | Fixed interest rate debt is more prevalent when long-term borrowing rates are high. |
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