What is the typical duration for bond anticipation notes?

Bond anticipation notes are typically issued for short-term financing needs, which makes the duration of these instruments around one to three years, though they are often less than one year. These notes are essentially a temporary borrowing mechanism used by municipalities to raise funds in anticipation of the forthcoming issuance of long-term bonds.

Since they are aimed at addressing immediate cash flow needs and are designed to be paid off quickly once long-term financing is secured, the short-term characteristic is crucial. This allows issuers to bridge funding gaps without committing to the long-term obligations that would come from issuing bonds immediately. Therefore, the correct answer accurately reflects the nature and purpose of bond anticipation notes.