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Sabrina Roppa
on Dec 02, 2024

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Assuming a project is expected to last fifteen years, which form of funding would be most consistent with the idea of maturity matching?

A) Fifteen-year bonds issued in the money market
B) Fifteen-year bonds issued in the capital market
C) Stock issued in the capital market
D) Stock issued in the money market

Maturity Matching

Maturity matching is a financial strategy that involves aligning the duration of assets and liabilities to manage liquidity and risk.

Fifteen-Year Bonds

Fixed income securities that mature or become due for repayment fifteen years after their issue date.

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital.

  • Distinguish between debt and equity financing.
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Autumn WurtzDec 09, 2024
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