Bond pricing & yield worksheet with answers

Free printable Bond pricing & yield worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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1.Easy

A zero-coupon bond pays €1 000 in 9 years and nothing before. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000n = 9YTM = 4%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 3 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 5%n = 3

P = €

3.Medium

A bond with a face value of €1 000 matures in 13 years and pays annual coupons. It sells for €812 when the yield to maturity is 5%. Find the coupon rate c in percent.

F = €1 000n = 13P = €812YTM = 5%

c = %

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 13 years. Its yield to maturity changes from 4% to 3.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 13y₁ = 4%y₂ = 3.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 10 years and sells for €1 130. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 10P = €1 130

YTM = %

6.Hard

A bond with 15 years to maturity (face value €1 000, annual coupon 5%) sells for €1 239. The issuer can call it in 6 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 239call price = €1 050call in 6 years

YTC = %

Answer key

1. P = 702.6 €
2. P = 972.8 €
3. c = 2.999 %
4. ΔP = 61.03 €
5. YTM = 2.514 %
6. YTC = 1.592 %

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