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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Name: ____________________   Date: ____________

1.Easy
years0123…8€20€20€20 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 8 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3.5%n = 8
P = €
2.Easy
years0123…10€20€20€20 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 10 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 5%n = 10
P = €
3.Medium

You buy a bond with 3 years to maturity (face value €1 000, annual coupon 8%) when its yield to maturity is 2.5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4%. Find your holding period return HPR in percent.

F = €1 000coupon = 8%n = 3y0 = 2.5%y1 = 4%
HPR = %
4.Medium
half-years0123…14€25€25€25 + €1 000P = ?

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 5.5%n = 7
P = €
5.Hard
years0123…9€860€80€80 + €1 000

A bond with a face value of €1 000 and an annual coupon of 8% matures in 9 years and sells for €860. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 9P = €860
YTM = %
6.Hard
half-years0123…18€934€30€30€30 + €1 000

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 9 years. It sells for €934. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 6% (2×)n = 9P = €934
YTM = %

Answer key

  1. 1. P = 896.9 €
  2. 2. P = 768.3 €
  3. 3. HPR = −0.1415 %
  4. 4. P = 971.3 €
  5. 5. YTM = 10.48 %
  6. 6. YTM = 7.001 %

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