Business, 15.04.2020 00:49 Harriche

A firm will borrow long-term:
A. if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
B. if long-term interest rates are expected to decline during the term of the debt.
C. if short-term interest rates are expected to decline during the term of the debt.
D. if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long-term.

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A firm will borrow long-term:
A. if the extra interest cost of borrowing long-term is less tha...