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 5% and matures in 10 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 9%n = 10

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €1 010. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €1 010

CY = %

3.Medium

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

F = €1 000coupon = 6%YTM = 4%n = 4

P = €

4.Medium

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

F = €1 000coupon = 2%YTM = 6%n = 4

P = €

5.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 = %

6.Hard

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 6 years. It sells for €846. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 2% (2×)n = 6P = €846

YTM = %

Answer key

1. P = 743.3 €
2. CY = 2.97 %
3. P = 1073 €
4. P = 859.6 €
5. YTM = 9.028 %
6. YTM = 5.003 %

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