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€45€45€45 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 3 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5%n = 3
P = €
2.Easy
years0123456€45€45€45 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 6 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5%n = 6
P = €
3.Medium
half-years0123…22€10€10€10 + €1 000P = ?

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3%n = 11
P = €
4.Medium

You buy a bond with 10 years to maturity (face value €1 000, annual coupon 6%) when its yield to maturity is 3.5%. 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 = 6%n = 10y0 = 3.5%y1 = 4%
HPR = %
5.Hard
years01234€965€30€30 + €1 000

A bond with a face value of €1 000 and an annual coupon of 3% matures in 4 years and sells for €965. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 4P = €965
YTM = %
6.Hard
years0123€1 119€60€60€60 + €1 060

A bond with 10 years to maturity (face value €1 000, annual coupon 6%) sells for €1 119. The issuer can call it in 3 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 119call price = €1 060call in 3 years
YTC = %

Answer key

  1. 1. P = 986.4 €
  2. 2. P = 974.6 €
  3. 3. P = 906.9 €
  4. 4. HPR = 0.06553 %
  5. 5. YTM = 3.963 %
  6. 6. YTC = 3.667 %

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