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

A zero-coupon bond with a face value of €1 000 matures in 13 years and costs €725 today. Find its yield to maturity YTM in percent.

F = €1 000n = 13P = €725

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and trades at €1 010. Find its current yield CY in percent.

F = €1 000coupon = 7%P = €1 010

CY = %

3.Medium

A bond with a face value of €1 000 matures in 11 years and pays annual coupons. It sells for €592 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 11P = €592YTM = 9%

c = %

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 6 years. Its yield to maturity changes from 3.5% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 2%n = 6y₁ = 3.5%y₂ = 4.5%

ΔP = €

5.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 7%) sells for €1 093. The issuer can call it in 4 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 093call price = €1 070call in 4 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 10 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 10P = €1 075

YTM = %

Answer key

1. YTM = 2.505 %
2. CY = 6.931 %
3. c = 3.005 %
4. ΔP = −49.02 €
5. YTC = 5.923 %
6. YTM = 5.027 %

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