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
years01234567€45€45€45 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 7 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5%n = 7
P = €
2.Easy
years0123…10€60€60€60 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 10 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 10
P = €
3.Medium

You buy a bond with 6 years to maturity (face value €1 000, annual coupon 4%) when its yield to maturity is 3.5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 4%n = 6y0 = 3.5%y1 = 4.5%
HPR = %
4.Medium
half-years0123…22€15€15€15 + €1 000P = ?

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 3.5%n = 11
P = €
5.Hard
years012345€1 045€40€40 + €1 000

A bond with a face value of €1 000 and an annual coupon of 4% matures in 5 years and sells for €1 045. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 5P = €1 045
YTM = %
6.Hard
half-years0123…22€1 466€40€40€40 + €1 000

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 11 years. It sells for €1 466. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 11P = €1 466
YTM = %

Answer key

  1. 1. P = 971.1 €
  2. 2. P = 1256 €
  3. 3. HPR = −0.837 %
  4. 4. P = 954.7 €
  5. 5. YTM = 3.017 %
  6. 6. YTM = 2.996 %

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