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 €544 today. Find its yield to maturity YTM in percent.

F = €1 000n = 12P = €544

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 3 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 4%n = 3

P = €

3.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 3.5%n = 9

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 9 years. Its yield to maturity changes from 9% to 8%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 9y₁ = 9%y₂ = 8%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 7 years and sells for €885. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 7P = €885

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 6 years. The yield to maturity is 6%. Find the Macaulay duration D in years.

F = €1 000coupon = 4%n = 6YTM = 6%

D = years

Answer key

1. YTM = 5.204 %
2. P = 1056 €
3. P = 1345 €
4. ΔP = 59.95 €
5. YTM = 4.986 %
6. D = 5.418 years

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