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 zero-coupon bond pays €1 000 in 12 years and nothing before. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000n = 12YTM = 7%

P = €

2.Easy

A zero-coupon bond pays €1 000 in 9 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 9YTM = 3.5%

P = €

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 4

P = €

4.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 8%n = 4

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 9 years and sells for €860. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 9P = €860

YTM = %

6.Hard

A bond with 16 years to maturity (face value €1 000, annual coupon 9%) sells for €1 089. The issuer can call it in 5 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 089call price = €1 090call in 5 years

YTC = %

Answer key

1. P = 444 €
2. P = 733.7 €
3. P = 1093 €
4. P = 932.7 €
5. YTM = 10.48 %
6. YTC = 8.28 %

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