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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 5 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3.5%n = 5

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 10 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 7%n = 10

P = €

3.Medium

A bond with a face value of €1 000 matures in 6 years and pays annual coupons. It sells for €905 when the yield to maturity is 7%. Find the coupon rate c in percent.

F = €1 000n = 6P = €905YTM = 7%

c = %

4.Medium

A bond with a face value of €1 000 matures in 10 years and pays annual coupons. It sells for €1 171 when the yield to maturity is 3%. Find the coupon rate c in percent.

F = €1 000n = 10P = €1 171YTM = 3%

c = %

5.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 6%) sells for €1 273. The issuer can call it in 6 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 273call price = €1 060call in 6 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 3 years and sells for €1 055. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 3P = €1 055

YTM = %

Answer key

1. P = 1158 €
2. P = 859.5 €
3. c = 5.007 %
4. c = 5.005 %
5. YTC = 2.065 %
6. YTM = 3.054 %

Full step-by-step solutions: practise this topic on examproblems.com.