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
years012345€935€45€45€45 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 4.5% and trades at €935. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €935
CY = %
2.Easy
years012345€1 025€60€60€60 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 6% and trades at €1 025. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €1 025
CY = %
3.Medium

You buy a bond with 12 years to maturity (face value €1 000, annual coupon 6%) 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 3%. Find your holding period return HPR in percent.

F = €1 000coupon = 6%n = 12y0 = 2.5%y1 = 3%
HPR = %
4.Medium
half-years0123456€15€15€15 + €1 000P = ?

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 3
P = €
5.Hard
years0123€1 088€50€50€50 + €1 050

A bond with 11 years to maturity (face value €1 000, annual coupon 5%) sells for €1 088. The issuer can call it in 3 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 088call price = €1 050call in 3 years
YTC = %
6.Hard
half-years0123…18€1 300€40€40€40 + €1 000

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 9 years. It sells for €1 300. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 9P = €1 300
YTM = %

Answer key

  1. 1. CY = 4.813 %
  2. 2. CY = 5.854 %
  3. 3. HPR = −1.578 %
  4. 4. P = 931.7 €
  5. 5. YTC = 3.471 %
  6. 6. YTM = 3.998 %

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