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 3% and matures in 7 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 8%n = 7

P = €

2.Easy

A zero-coupon bond pays €1 000 in 13 years and nothing before. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000n = 13YTM = 7%

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 11 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 2.5%n = 11

P = €

4.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 2.5%n = 4

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 9 years and sells for €1 070. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 9P = €1 070

YTM = %

6.Hard

A bond with 10 years to maturity (face value €1 000, annual coupon 7%) sells for €1 113. The issuer can call it in 3 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 113call price = €1 070call in 3 years

YTC = %

Answer key

1. P = 739.7 €
2. P = 415 €
3. P = 1526 €
4. P = 1057 €
5. YTM = 5.015 %
6. YTC = 5.065 %

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