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 13 years and costs €425 today. Find its yield to maturity YTM in percent.

F = €1 000n = 13P = €425

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 8 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 8

P = €

3.Medium

A bond with a face value of €1 000 matures in 8 years and pays annual coupons. It sells for €897 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 8P = €897YTM = 3.5%

c = %

4.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 8%n = 3

P = €

5.Hard

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 7 years. It sells for €1 351. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 7P = €1 351

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 3 years. It sells for €871. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4% (2×)n = 3P = €871

YTM = %

Answer key

1. YTM = 6.803 %
2. P = 841.6 €
3. c = 2.002 %
4. P = 973.8 €
5. YTM = 2.502 %
6. YTM = 9.002 %

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