Question 25
Which of the following is a reason for preferring short-term bonds over long-term bonds?
Faster ability to reinvest at new rates
Higher exposure to interest rate changes
Higher default risk
Lower coupon payments
Question 25: Which of the following is a reason for preferring short-…
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Correct answer
Faster ability to reinvest at new rates
Question 25 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.
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