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