Final answer:
The statement in question is false. Borrowers usually prefer borrowing at maturities where the one-year forward rate is above the YTM, as the YTM encompasses the total return of a bond held to maturity.
Step-by-step explanation:
The question pertains to the preference of a borrower related to interest rates and maturities of loans. To answer the question, the statement is false. Borrowers typically have a preference to borrow at maturities where the one-year forward rate is higher than the Yield to Maturity (YTM) for the same maturity. This is because the YTM reflects the total return expected on a bond if the bond is held to maturity, incorporating both interest payments and the capital gain or loss that the investor will realize. Therefore, if the forward rate, which represents the expected future interest rate, is below the YTM, this would imply a future expectation of lower interest rates and could suggest that waiting might yield a better borrowing cost. However, if other factors are present, such as the borrower's credit risk or changes in the overall interest rate environment due to monetary policy, these could also influence the borrower's decision.