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 2% and matures in 10 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 4%n = 10

P = €

2.Easy

A zero-coupon bond pays €1 000 in 11 years and nothing before. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000n = 11YTM = 4%

P = €

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5%n = 3

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 12 years. Its yield to maturity changes from 2.5% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 5%n = 12y₁ = 2.5%y₂ = 4.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 7 years and sells for €870. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 7P = €870

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 7 years and sells for €1 090. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 7P = €1 090

YTM = %

Answer key

1. P = 837.8 €
2. P = 649.6 €
3. P = 944.9 €
4. ΔP = −210.9 €
5. YTM = 7.45 %
6. YTM = 3.527 %

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