The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.
<h3>What is a Long-term Bond?</h3>
Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.
They usually pay a higher interest rate than the short-term bonds which span between a year and three years.
See the link below for more about long-term bonds:
brainly.com/question/3521722
Answer:
DiscountHaven Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores. This makes it difficult for smaller retail stores and supermarkets to compete against DiscountHaven's low prices. Thus, DiscountHaven has a competitive advantage due to its economies of scale.
Explanation:
Economies of scale are the economic benefits that are realized by operating on a larger scale. In general, the average cost per unit of output decreases with an increasing scale because fixed costs are spread over more units of output. Operational efficiency is often greater with increasing scale, which in turn leads to lower variable costs. When the average costs increase with an increasing scale, this is called the disadvantage of scale.
When an industry is characterized by economies of scale, it can lead to a monopoly or oligopoly. Only large companies can then produce economically so that the barriers to entry for new market players are high.
Answer: $750,000
Explanation:
Net Income
Sales Revenue 2,000,000
Interest/ Dividend Revenue <u> 50,000</u>
2,050,000
Cost of Goods sold (1,000,000)
Selling and Admin expenses (200,000)
Loss on Discontinued <u> (100,000)</u>
Net Income $750,000
Answer:
114
Explanation:
For computing the forecast value for the resulting year, we have to apply the formula which is shown below:
= Actual demand × alpha + forecast demand × ( 1- alpha)
= 90 × 0.2 + 120 × (1 - 0.2)
= 18 + 96
= 114
To compute the forecast value we have to deduct the alpha from the forecast demand and multiply the alpha with the actual demand
