According to the Preferred Habitat Theory

question 84

Multiple Choice

According to the preferred habitat theory

• A)investors prefer longer to shorter maturities.
• B)investors prefer shorter to longer maturities.
• C)investors are indifferent between short and long maturities.
• D)investors are more interested in the tax treatment of bonds than they are in the liquidity of bonds.

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Definitions:

SMEs

Small and Medium-sized Enterprises, which are businesses with personnel numbers or financial turnover falling below certain predefined limits.