A corporate bond issued by an infrastructure firm has a nominal value of £1,000 and an annual coupon of £75. The bond has 12 years remaining until maturity, and its current yield is 6.25%.
What is the current market price of the bond?
£833.33
£1,000.00
£1,075.00
£1,200.00
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.