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Business Plans Differ in the Time Horizons That They Cover

question 69

Essay

Business plans differ in the time horizons that they cover. Discuss the three major types of business plans in terms of their intended duration and explain why all three of these types of plans are important to a business.


Definitions:

Coupon Bond

A debt security that pays the investor periodic interest payments called coupons and returns the principal at the end of the maturity.

Par Value

Par Value is the face value of a bond or stock as stated by the issuer, which might not reflect its market value.

Yield To Maturity

The total return expected on a bond if held till its maturity date, including both interest payments and capital gains or losses.

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