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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1.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and trades at €950. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €950

CY = %

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 3.5%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3.5%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 6%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 9%n = 12

P = €

5.Hard

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 6 years. It sells for €1 051. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 6% (2×)n = 6P = €1 051

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 8 years and sells for €920. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 8P = €920

YTM = %

Answer key

1. CY = 8.421 %
2. P = 1125 €
3. P = 811.6 €
4. P = 673.9 €
5. YTM = 5.005 %
6. YTM = 9.471 %

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