Debt refinancing and maturity

CFA Level I Fixed Income
#1

Hello,

The following is one of the options under a question asking which kind of debt instrument has the longest maturity:

A floating rate bond issued by a corporation to refinance existing debt on an immediate basis

I don’t understand why the examiner emphasizes on an immediate basis. Does it have anything to do with the maturity of the bond? If not “on an immediate basis”, will the maturity be longer or shorter?

Thanks.

#2

The phrase “on an immediate basis” is stupid (and ugly); if the author means “immediately”, he should write “immediately”.

What the immediate issuance of floating-rate debt has to do with its maturity is a mystery.

#3

Yes.

Got it. Thanks.

#4

My pleasure.