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 4% and matures in 10 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 7%n = 10

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 6 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 2.5%n = 6

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 11 years. Its yield to maturity changes from 9% to 11%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 11y₁ = 9%y₂ = 11%

ΔP = €

4.Medium

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

F = €1 000coupon = 8%YTM = 4%n = 7

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 6 years and sells for €1 050. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 6P = €1 050

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 4 years and sells for €965. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 4P = €965

YTM = %

Answer key

1. P = 789.3 €
2. P = 1110 €
3. ΔP = −112.2 €
4. P = 1242 €
5. YTM = 6.953 %
6. YTM = 3.963 %

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