Question 12 of 15
The concept of compound interest is most appropriately described as:
A. Interest earned on an investment
B. The total amount of interest earned over the life of an investment
C. Interest earned on interest
D. None of the above
Question 13 of 15
The following entities issue bonds to raise long-term loans except:
A. The federal government
B. State and local governments
C. Companies
D. Individuals
Question 14 of 15
A 5-year treasury bond with a coupon rate of 8 % has a face value of $ 1000. What is the semi-annual interest payment? Annual interest payment = 1000( 0.08) = $ 80; Semi-annual payment = 80 / 2 = $ 40
A. $ 80
B. $ 40
C. $ 100