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Why Are Long-Term Bonds More Sensitive to Changes in Interest

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Why are long-term bonds more sensitive to changes in interest rates than short-term bonds?


Definitions:

Budgeted

The process of creating a plan to spend your money over a certain period.

Expected Unit Sales

The number of units of product a business anticipates selling over a specific period, based on forecasts.

Inventory On Hand

Inventory on hand is the total quantity of goods, materials, and products that a company has available at any given time for use in production or sale.

Production Units

The quantity of items or goods produced during a specific period, serving as a measure of a company's manufacturing activity.

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