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 6% and matures in 4 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 4

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and trades at €1 080. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €1 080

CY = %

3.Medium

A bond with a face value of €1 000 matures in 13 years and pays annual coupons. It sells for €1 604 when the yield to maturity is 2.5%. Find the coupon rate c in percent.

F = €1 000n = 13P = €1 604YTM = 2.5%

c = %

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 9%n = 11

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 3 years and sells for €935. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 3P = €935

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 5 years and sells for €1 040. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 5P = €1 040

YTM = %

Answer key

1. P = 1112 €
2. CY = 5.556 %
3. c = 7.999 %
4. P = 586.5 €
5. YTM = 9.595 %
6. YTM = 7.024 %

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