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 7% and trades at €1 120. Find its current yield CY in percent.

F = €1 000coupon = 7%P = €1 120

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 10 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 3%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 2.5%n = 10

P = €

4.Medium

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

F = €1 000coupon = 4%YTM = 9%n = 9

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 6 years. The yield to maturity is 5%. Find the Macaulay duration D in years.

F = €1 000coupon = 6%n = 6YTM = 5%

D = years

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 4 years. The yield to maturity is 8%. Find the Macaulay duration D in years.

F = €1 000coupon = 4%n = 4YTM = 8%

D = years

Answer key

1. CY = 6.25 %
2. P = 1128 €
3. P = 1396 €
4. P = 696 €
5. D = 5.234 years
6. D = 3.756 years

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