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

A zero-coupon bond with a face value of €1 000 matures in 11 years and costs €485 today. Find its yield to maturity YTM in percent.

F = €1 000n = 11P = €485

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and trades at €1 010. Find its current yield CY in percent.

F = €1 000coupon = 4%P = €1 010

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 8 years. Its yield to maturity changes from 2.5% to 3%. By how much ΔP does the bond price change?

F = €1 000coupon = 5%n = 8y₁ = 2.5%y₂ = 3%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 11 years. Its yield to maturity changes from 4% to 2%. By how much ΔP does the bond price change?

F = €1 000coupon = 4.5%n = 11y₁ = 4%y₂ = 2%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 3 years and sells for €1 055. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 3P = €1 055

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 3 years. It sells for €895. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4% (2×)n = 3P = €895

YTM = %

Answer key

1. YTM = 6.799 %
2. CY = 3.96 %
3. ΔP = −38.86 €
4. ΔP = 200.9 €
5. YTM = 4.017 %
6. YTM = 8.006 %

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