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 zero-coupon bond with a face value of €1 000 matures in 11 years and costs €762 today. Find its yield to maturity YTM in percent.

F = €1 000n = 11P = €762

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 9 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3%n = 9

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 12 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 7%n = 12

P = €

4.Medium

You buy a bond with 6 years to maturity (face value €1 000, annual coupon 5%) when its yield to maturity is 7%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 8.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 5%n = 6y₀ = 7%y₁ = 8.5%

HPR = %

5.Hard

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

F = €1 000coupon = 3%n = 4YTM = 4%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 5 years and sells for €1 070. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 5P = €1 070

YTM = %

Answer key

1. YTM = 2.502 %
2. P = 922.1 €
3. P = 1080 €
4. HPR = 0.8189 %
5. D = 3.825 years
6. YTM = 1.535 %

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