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 8% and matures in 4 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 9%n = 4

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 2 years and costs €912 today. Find its yield to maturity YTM in percent.

F = €1 000n = 2P = €912

YTM = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 5 years. Its yield to maturity changes from 6% to 4%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 5y₁ = 6%y₂ = 4%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 7%n = 3

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 5 years. The yield to maturity is 7%. Find the Macaulay duration D in years.

F = €1 000coupon = 4%n = 5YTM = 7%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 10 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 10P = €925

YTM = %

Answer key

1. P = 967.6 €
2. YTM = 4.713 %
3. ΔP = 91.43 €
4. P = 1027 €
5. D = 4.601 years
6. YTM = 6.02 %

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