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Operating Budget
It is a collection or set of formal financial documents that details expected expenses and revenues, as like all other expected operating and financial transactions over some particular period of time. Therefore, it outlines the firm's operating plans over that time period. The operating cycle mostly covers one year.
Illustration An investor with a 1-year investment horizon purchases a 20-year 5% corporate bond. The prevailing price of the bond is Rs.82.3488 for a yield of 6.2%
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