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

A bond with a face value of €1 000 pays an annual coupon of 7% and trades at €1 075. Find its current yield CY in percent.

F = €1 000coupon = 7%P = €1 075

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 8 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 7%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 4%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3.5%n = 4

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 7 years and sells for €1 065. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 7P = €1 065

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 4 years. The yield to maturity is 9%. Find the Macaulay duration D in years.

F = €1 000coupon = 6%n = 4YTM = 9%

D = years

Answer key

1. CY = 6.512 %
2. P = 820.9 €
3. P = 932.1 €
4. P = 944.5 €
5. YTM = 1.996 %
6. D = 3.654 years

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