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 bond with a face value of €1 000 pays an annual coupon of 6% and matures in 4 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 4

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and trades at €945. Find its current yield CY in percent.

F = €1 000coupon = 4%P = €945

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 8 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 8%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3.5%n = 3

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 4 years. The yield to maturity is 2.5%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 4YTM = 2.5%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 7 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 7P = €945

YTM = %

Answer key

1. P = 1092 €
2. CY = 4.233 %
3. P = 883.5 €
4. P = 1099 €
5. D = 3.83 years
6. YTM = 7.021 %

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