What example characterizes the typical duration of Senior Notes?

Senior Notes typically have a duration of 7-10 years, which aligns with the characteristics of secured debt instruments that prioritize repayment. These notes are designed to provide investors with a blend of moderate term exposure and relatively higher yield, often reflecting the company’s credit profile and market conditions. The 7-10 year time frame allows issuers to secure longer-term financing, which can be used for various corporate purposes, including refinancing existing debt or funding growth initiatives.

Option C is correct because it accurately captures the standard maturity range for Senior Notes in the leveraged finance market. This maturity profile offers investors a balance between risk and return, appealing to those seeking secure investments over a substantial period without tying up their capital indefinitely. By understanding the typical duration of Senior Notes, one can better assess the interest rate risks and investment horizons that align with various corporate financing needs.