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 6% and trades at €1 120. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €1 120

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 7 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 7

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 11 years. Its yield to maturity changes from 7% to 8%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 11y₁ = 7%y₂ = 8%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 7 years and pays annual coupons. It sells for €940 when the yield to maturity is 4%. Find the coupon rate c in percent.

F = €1 000n = 7P = €940YTM = 4%

c = %

5.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 9%) sells for €1 225. The issuer can call it in 4 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 225call price = €1 090call in 4 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 10 years and sells for €880. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 10P = €880

YTM = %

Answer key

1. CY = 5.357 %
2. P = 1222 €
3. ΔP = −57 €
4. c = 3 %
5. YTC = 4.782 %
6. YTM = 4.518 %

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