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 zero-coupon bond with a face value of €1 000 matures in 6 years and costs €828 today. Find its yield to maturity YTM in percent.

F = €1 000n = 6P = €828

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €1 090. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €1 090

CY = %

3.Medium

A bond with a face value of €1 000 matures in 8 years and pays annual coupons. It sells for €668 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 8P = €668YTM = 9%

c = %

4.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 6%n = 8

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 4 years and sells for €950. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 4P = €950

YTM = %

6.Hard

A bond trades at €910 with a yield to maturity of 5% (annual compounding) and a Macaulay duration of 6 years. Use the modified duration to estimate the new price P if the yield falls by 150 basis points.

P₀ = €910y = 5%D = 6Δy = −150 bp

P = €

Answer key

1. YTM = 3.196 %
2. CY = 2.752 %
3. c = 3.002 %
4. P = 874.4 €
5. YTM = 8.527 %
6. P = 988 €

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