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

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Question 34

A corporate bond has a nominal (par) value of £400 £400\,£400 and a coupon rate of 7.5%. If the bond is currently trading at a market price of £375£375£375, this implies that the

A

current yield on the bond is 6.0%6.0\%6.0%.

B

current yield on the bond is 7.5%7.5\%7.5%.

C

current yield on the bond is 8.0%8.0\%8.0%.

D

current yield on the bond is 12.5%12.5\%12.5%.

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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