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 3% and trades at €920. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €920

CY = %

2.Easy

A zero-coupon bond pays €1 000 in 4 years and nothing before. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000n = 4YTM = 3%

P = €

3.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 5.5%n = 12

P = €

4.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 7%n = 11

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 10 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 10P = €925

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 8 years and sells for €1 130. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €1 130

YTM = %

Answer key

1. CY = 3.261 %
2. P = 888.5 €
3. P = 869.5 €
4. P = 810.4 €
5. YTM = 6.02 %
6. YTM = 4.989 %

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