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

A zero-coupon bond with a face value of €1 000 matures in 13 years and costs €415 today. Find its yield to maturity YTM in percent.

F = €1 000n = 13P = €415

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and trades at €1 080. Find its current yield CY in percent.

F = €1 000coupon = 2%P = €1 080

CY = %

3.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3.5%n = 10

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 12 years. Its yield to maturity changes from 5% to 3%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 12y₁ = 5%y₂ = 3%

ΔP = €

5.Hard

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 6 years. It sells for €919. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 2% (2×)n = 6P = €919

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 4 years and sells for €1 035. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 4P = €1 035

YTM = %

Answer key

1. YTM = 6.999 %
2. CY = 1.852 %
3. P = 1293 €
4. ΔP = 231.8 €
5. YTM = 3.509 %
6. YTM = 5.013 %

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