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 8% and matures in 3 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 7%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and trades at €1 070. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €1 070

CY = %

3.Medium

You buy a bond with 9 years to maturity (face value €1 000, annual coupon 2%) when its yield to maturity is 6%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 7.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 2%n = 9y₀ = 6%y₁ = 7.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 2.5%n = 10

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 5 years and sells for €955. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 5P = €955

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 5 years and sells for €900. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 5P = €900

YTM = %

Answer key

1. P = 1026 €
2. CY = 5.607 %
3. HPR = −4.133 %
4. P = 1132 €
5. YTM = 4.011 %
6. YTM = 7.47 %

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