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 12 years and costs €576 today. Find its yield to maturity YTM in percent.

F = €1 000n = 12P = €576

YTM = %

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 6 years and costs €799 today. Find its yield to maturity YTM in percent.

F = €1 000n = 6P = €799

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 4%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3.5%n = 12

P = €

5.Hard

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

F = €1 000coupon = 5%n = 5YTM = 3%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 8 years and sells for €850. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 8P = €850

YTM = %

Answer key

1. YTM = 4.704 %
2. YTM = 3.811 %
3. P = 1204 €
4. P = 1146 €
5. D = 4.568 years
6. YTM = 6.46 %

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