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 12 years and costs €685 today. Find its yield to maturity YTM in percent.

F = €1 000n = 12P = €685

YTM = %

2.Easy

A zero-coupon bond pays €1 000 in 7 years and nothing before. The yield to maturity is 2% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 2%

P = €

3.Medium

You buy a bond with 10 years to maturity (face value €1 000, annual coupon 3%) when its yield to maturity is 8%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 8.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 3%n = 10y₀ = 8%y₁ = 8.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3%n = 7

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 5 years and sells for €905. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 5P = €905

YTM = %

6.Hard

A bond with 15 years to maturity (face value €1 000, annual coupon 6%) sells for €1 161. The issuer can call it in 4 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 161call price = €1 060call in 4 years

YTC = %

Answer key

1. YTM = 3.203 %
2. P = 870.6 €
3. HPR = 4.358 %
4. P = 1125 €
5. YTM = 9.472 %
6. YTC = 3.091 %

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