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 7% and matures in 5 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3%n = 5

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 5 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3.5%n = 5

P = €

3.Medium

A bond with a face value of €1 000 matures in 12 years and pays annual coupons. It sells for €1 043 when the yield to maturity is 5.5%. Find the coupon rate c in percent.

F = €1 000n = 12P = €1 043YTM = 5.5%

c = %

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 4%n = 9

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 €1 035. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 4P = €1 035

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 8 years. It sells for €967. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4.5% (2×)n = 8P = €967

YTM = %

Answer key

1. P = 1183 €
2. P = 1068 €
3. c = 5.999 %
4. P = 925 €
5. YTM = 5.99 %
6. YTM = 5.006 %

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