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2.4 Financial markets and monetary policy (A-level only)

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Question 7

A long-dated £100 \pounds 100\,£100 government bond with a coupon rate of 6% has a current market value of £120\pounds 120£120. This implies that the

A

current yield on the bond is 6%6\%6%.

B

current yield on the bond is 5%5\%5%.

C

market rate of interest is 3%3\%3%.

D

market rate of interest is 6%6\%6%.

Markscheme

2.4 Financial markets and monetary policy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.4 Financial markets and monetary policy (A-level only)

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.

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