Bonds in the Amount of $100,000 and a Life of 10

question 177

Multiple Choice

Bonds in the amount of $100,000 and a life of 10 years were issued by the Focus Company.If the face rate is 6% and interest is paid semiannually, what would be the total amount of interest paid over the life of the bonds?

• A) $60,000
• B) $120,000
• C) $30,000
• D) $6,000

---

Definitions:

Investment Opportunity

A financial or business venture or asset that has the potential to yield returns or profits.

Turnover

The rate at which inventory is sold and replaced over a given period or the rate at which employees leave and are replaced in a company.

Investment Opportunity

A potential financial venture, asset, or avenue that promises to yield returns or appreciates in value over time, warranting initial expenditure or investment.

Margin

The difference between the selling price of a good or service and its production or acquisition cost, often expressed as a percentage of the selling price.