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 8% and trades at €1 080. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 080

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 5%n = 4

P = €

3.Medium

A bond with a face value of €1 000 matures in 12 years and pays annual coupons. It sells for €1 338 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 12P = €1 338YTM = 3.5%

c = %

4.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 9%n = 8

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 3 years and sells for €975. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 3P = €975

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 7 years and sells for €940. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 7P = €940

YTM = %

Answer key

1. CY = 7.407 %
2. P = 1071 €
3. c = 6.998 %
4. P = 943.8 €
5. YTM = 5.934 %
6. YTM = 5.038 %

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