The maturity of debt instruments which faces more price fluctuations is ____________?
Correct answer: D. long term maturity
- A. primary maturity
- B. capital maturity
- C. short term maturity
- D. long term maturity
Explanation
Long-term debt instruments generally show greater price fluctuations because their values are more sensitive to changes in interest rates over a longer period. Short-term instruments are comparatively less sensitive.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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