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 bond with a face value of €1 000 pays an annual coupon of 6% and matures in 3 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 5.5%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 10 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 9%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 13 years. Its yield to maturity changes from 5% to 7%. By how much ΔP does the bond price change?

F = €1 000coupon = 2%n = 13y₁ = 5%y₂ = 7%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 14 years. Its yield to maturity changes from 7% to 7.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 14y₁ = 7%y₂ = 7.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 3 years. The yield to maturity is 8%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 3YTM = 8%

D = years

6.Hard

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 5 years. It sells for €1 070. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4% (2×)n = 5P = €1 070

YTM = %

Answer key

1. P = 1013 €
2. P = 871.6 €
3. ΔP = −136.1 €
4. ΔP = −32.19 €
5. D = 2.805 years
6. YTM = 2.502 %

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