Explain there is a greater chance that a borrower

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Reference no: EM1371389

Which of the following reasons for considering long-term loans inherently more risky than short-term loans most accurate?

A. There is a greater chance that a borrower will default in a longer time - frame.

B. The loan values are very sensitive to changes in market interest rates.

C. The penalties for closing out a long term loan early make them unattractive to many investors.

D. Long term loans typically have ongoing costs that accumulate over the life of the loan.

Reference no: EM1371389

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