Q176
Maturity of debt instruments which faces more price fluctuations is
A.
primary maturity
B.
capital maturity
C.
short term maturity
D.
long term maturity
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Maturity of debt instruments which faces more price fluctuations is long term maturity. Term to maturity refers to the remaining life of a debt instrument. With bonds, term to maturity is the time between when the bond is issued and when it matures, known as its maturity date, at which time the issuer must redeem the bond by paying the principal or face value.