The price of a government bond was £1 000 when it was issued. The bond has no maturity date and the government does not intend to redeem it. The bond pays a coupon of £60 per year to the bondholder and currently has a market price of £1 500.
Which one of the following fractions represents the current yield on the bond?
125\frac{1}{25}251
350\frac{3}{50}503
115\frac{1}{15}151
23\frac{2}{3}32
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.