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 zero-coupon bond pays €1 000 in 19 years and nothing before. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000n = 19YTM = 5%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 7 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 9%n = 7

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 10 years. Its yield to maturity changes from 2.5% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 4.5%n = 10y₁ = 2.5%y₂ = 4.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 15 years and pays annual coupons. It sells for €1 433 when the yield to maturity is 2.5%. Find the coupon rate c in percent.

F = €1 000n = 15P = €1 433YTM = 2.5%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 10 years and sells for €930. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 10P = €930

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 €1 095. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €1 095

YTM = %

Answer key

1. P = 395.7 €
2. P = 748.4 €
3. ΔP = −175 €
4. c = 5.997 %
5. YTM = 6.996 %
6. YTM = 5.5 %

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