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 with a face value of €1 000 matures in 7 years and costs €802 today. Find its yield to maturity YTM in percent.

F = €1 000n = 7P = €802

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and trades at €1 135. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €1 135

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 15 years. Its yield to maturity changes from 5.5% to 6.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 15y₁ = 5.5%y₂ = 6.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 7 years. Its yield to maturity changes from 2.5% to 4%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 7y₁ = 2.5%y₂ = 4%

ΔP = €

5.Hard

A bond trades at €965 with a yield to maturity of 3% (annual compounding) and a Macaulay duration of 4.7 years. Use the modified duration to estimate the new price P if the yield falls by 150 basis points.

P₀ = €965y = 3%D = 4.7Δy = −150 bp

P = €

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 3 years and sells for €950. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 3P = €950

YTM = %

Answer key

1. YTM = 3.202 %
2. CY = 3.965 %
3. ΔP = −109.9 €
4. ΔP = −102.2 €
5. P = 1031 €
6. YTM = 10.01 %

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