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 4.5% and trades at €935. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €935

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 5 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 5%n = 5

P = €

3.Medium

You buy a bond with 8 years to maturity (face value €1 000, annual coupon 2%) when its yield to maturity is 5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4%. Find your holding period return HPR in percent.

F = €1 000coupon = 2%n = 8y₀ = 5%y₁ = 4%

HPR = %

4.Medium

You buy a bond with 3 years to maturity (face value €1 000, annual coupon 5%) when its yield to maturity is 3%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 2.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 5%n = 3y₀ = 3%y₁ = 2.5%

HPR = %

5.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 5%) sells for €1 226. The issuer can call it in 3 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 226call price = €1 050call in 3 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 8 years and sells for €1 090. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 8P = €1 090

YTM = %

Answer key

1. CY = 4.813 %
2. P = 1130 €
3. HPR = 11.64 %
4. HPR = 3.939 %
5. YTC = 50 %
6. YTM = 6.521 %

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