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 5% and matures in 7 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 5.5%n = 7

P = €

2.Easy

A zero-coupon bond pays €1 000 in 2 years and nothing before. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000n = 2YTM = 4%

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 3 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 6%n = 3

P = €

4.Medium

A bond with a face value of €1 000 matures in 11 years and pays annual coupons. It sells for €1 263 when the yield to maturity is 4%. Find the coupon rate c in percent.

F = €1 000n = 11P = €1 263YTM = 4%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 3 years and sells for €960. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 3P = €960

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 7 years. It sells for €1 251. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 7% (2×)n = 7P = €1 251

YTM = %

Answer key

1. P = 971.6 €
2. P = 924.6 €
3. P = 1054 €
4. c = 7.002 %
5. YTM = 4.454 %
6. YTM = 2.998 %

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