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 trades at €950. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €950

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and trades at €1 060. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €1 060

CY = %

3.Medium

You buy a bond with 9 years to maturity (face value €1 000, annual coupon 6%) when its yield to maturity is 5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4%. Find your holding period return HPR in percent.

F = €1 000coupon = 6%n = 9y₀ = 5%y₁ = 4%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 6%n = 3

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 6 years. The yield to maturity is 2.5%. Find the Macaulay duration D in years.

F = €1 000coupon = 2%n = 6YTM = 2.5%

D = years

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 3 years. The yield to maturity is 6%. Find the Macaulay duration D in years.

F = €1 000coupon = 4.5%n = 3YTM = 6%

D = years

Answer key

1. CY = 6.316 %
2. CY = 4.245 %
3. HPR = 11.54 %
4. P = 945.8 €
5. D = 5.709 years
6. D = 2.87 years

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