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 3 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 3.5%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 3 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 4%n = 3

P = €

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 8%n = 6

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 4 years. Its yield to maturity changes from 3% to 4%. By how much ΔP does the bond price change?

F = €1 000coupon = 4%n = 4y₁ = 3%y₂ = 4%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 3 years and sells for €935. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 3P = €935

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 6 years. It sells for €1 103. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 7% (2×)n = 6P = €1 103

YTM = %

Answer key

1. P = 986 €
2. P = 1111 €
3. P = 906.1 €
4. ΔP = −37.17 €
5. YTM = 7.499 %
6. YTM = 4.992 %

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