When There Is an Upward Sloping Yield Curve and Interest

Multiple Choice

When there is an upward sloping yield curve and interest rates are forecast to increase a firm decides to restructure its outstanding debt to longer term then in the short-term the company:

A) faces an immediate decrease in its costs of funds.
B) faces an immediate increase in its costs of funds.
C) is reducing its basis risk.
D) is reducing its business risk.