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 3% and matures in 5 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 5

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and trades at €875. Find its current yield CY in percent.

F = €1 000coupon = 2%P = €875

CY = %

3.Medium

A bond with a face value of €1 000 matures in 12 years and pays annual coupons. It sells for €1 188 when the yield to maturity is 4%. Find the coupon rate c in percent.

F = €1 000n = 12P = €1 188YTM = 4%

c = %

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 9 years. Its yield to maturity changes from 4% to 5%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 9y₁ = 4%y₂ = 5%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 8 years and sells for €1 095. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €1 095

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 10 years and sells for €870. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 10P = €870

YTM = %

Answer key

1. P = 893.2 €
2. CY = 2.286 %
3. c = 6.003 %
4. ΔP = −84.18 €
5. YTM = 5.5 %
6. YTM = 9.028 %

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