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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Name: ____________________   Date: ____________

1.Easy
years012P = ?€1 000

A zero-coupon bond pays €1 000 in 2 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 2YTM = 3.5%
P = €
2.Easy
years0123456P = ?€1 000

A zero-coupon bond pays €1 000 in 6 years and nothing before. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000n = 6YTM = 3%
P = €
3.Medium
half-years0123…12€10€10€10 + €1 000P = ?

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 4%n = 6
P = €
4.Medium
years0123…14€1 087C = ?C = ?C = ? + €1 000

A bond with a face value of €1 000 matures in 14 years and pays annual coupons. It sells for €1 087 when the yield to maturity is 7%. Find the coupon rate c in percent.

F = €1 000n = 14P = €1 087YTM = 7%
c = %
5.Hard
years0123€945€30€30 + €1 000

A bond with a face value of €1 000 and an annual coupon of 3% matures in 3 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 3P = €945
YTM = %
6.Hard
years0123456P€45€45€45 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 6 years. The yield to maturity is 5%. Find the Macaulay duration D in years.

F = €1 000coupon = 4.5%n = 6YTM = 5%
D = years

Answer key

  1. 1. P = 933.5 €
  2. 2. P = 837.5 €
  3. 3. P = 894.2 €
  4. 4. c = 7.995 %
  5. 5. YTM = 5.02 %
  6. 6. D = 5.381 years

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