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
years0123456€759€1 000

A zero-coupon bond with a face value of €1 000 matures in 6 years and costs €759 today. Find its yield to maturity YTM in percent.

F = €1 000n = 6P = €759
YTM = %
2.Easy
years01234567P = ?€1 000

A zero-coupon bond pays €1 000 in 7 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 3.5%
P = €
3.Medium
half-years0123…8€25€25€25 + €1 000P = ?

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 6%n = 4
P = €
4.Medium
years0123…13P€45€45€45 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 13 years. Its yield to maturity changes from 7% to 5%. By how much ΔP does the bond price change?

F = €1 000coupon = 4.5%n = 13y1 = 7%y2 = 5%
ΔP = €
5.Hard
years012345€955€40€40 + €1 000

A bond with a face value of €1 000 and an annual coupon of 4% matures in 5 years and sells for €955. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 5P = €955
YTM = %
6.Hard
years01234567€925€70€70 + €1 000

A bond with a face value of €1 000 and an annual coupon of 7% matures in 7 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 7P = €925
YTM = %

Answer key

  1. 1. YTM = 4.703 %
  2. 2. P = 786 €
  3. 3. P = 964.9 €
  4. 4. ΔP = 162 €
  5. 5. YTM = 5.041 %
  6. 6. YTM = 8.463 %

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