A Graphics Design Company Issued Bonds in the Amount of $1,000,000

question 160

Multiple Choice

A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the bonds are due in 10 years, what would be the total amount of interest paid over the life of the bonds?

• A)$1,000,000
• B)$400,000
• C)$800,000
• D)$80,000

---

Definitions:

Elasticity of Supply

Elasticity of supply measures the responsiveness of the quantity supplied of a good or service to a change in its price.

Shifting Resources

The reallocation of resources from one use to another, often in response to changing economic conditions or priorities.

Software Upgrade

The process of replacing a software version with a newer, often more improved or secure version.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.