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

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Question 77

A perpetual corporate bond was issued by an infrastructure firm at a nominal value of £2,500\pounds 2,500£2,500. The bond has no maturity date and pays a fixed coupon of £175 \pounds 175\,£175 per year. Due to falling market interest rates, the bond's current market price has risen to £3,500\pounds 3,500£3,500.

Which one of the following fractions represents the current yield on this bond?

A

7100\frac{7}{100}1007​

B

120\frac{1}{20}201​

C

57\frac{5}{7}75​

D

75\frac{7}{5}57​

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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