Interest Costs for Short-Term Debt Are Generally Lower Than Interest

Interest costs for short-term debt are generally lower than interest costs for long-term debt because

A) the term structure of interest rates generally reflects an upward sloping yield curve.
B) short-term debt is more flexible, allowing a match of short-term needs with short-term financing.
C) investors demand higher returns on short-term debt due to liquidity concerns.
D) both A and B.

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