Long-term bonds are preferable to hold if interest rates decrease because their price will rise more than the price of short-term bonds, providing a bigger return. Long-term bonds, however, are more susceptible to interest-rate risk. In addition, the longevity of the bonds, not only their term to maturity, is a major factor.
<h3>What are
short-term bonds?</h3>
Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.
The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.
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The percent change in quantity demanded of a good divided by the percent change in income, all other tings unchanged, is the price elasticity of demand. This is the equation you will use when finding the price elasticity of demand. Price elasticity of demand is measuring the demand of a product or service when nothing changes besides the price.
Answer: Sales price per unit less total variable cost per unit.
Explanation:
Cost-volume-profit analysis works by dividing the expenses faced by a business in the production and/ or selling of goods into fixed and variable costs.
To calculate the contribution margin in such a scenario, the Total variable cost incurred per unit is deducted from the sales price per unit. From this figure, the fixed cost can then be subtracted to find the operating income per unit.
If one wants to find the breakeven volume, you can divide the Fixed assets by the Contribution margin.