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
years01234567€45€45€45 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 7 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 7%n = 7
P = €
2.Easy
years0123…8€70€70€70 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 8 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 8%n = 8
P = €
3.Medium

You buy a bond with 9 years to maturity (face value €1 000, annual coupon 3%) when its yield to maturity is 4%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 3.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 3%n = 9y0 = 4%y1 = 3.5%
HPR = %
4.Medium
half-years0123…20€22.50€22.50€22.50 + €1 000P = ?

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5.5%n = 10
P = €
5.Hard
years0123…9€1 155€50€50 + €1 000

A bond with a face value of €1 000 and an annual coupon of 5% matures in 9 years and sells for €1 155. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 9P = €1 155
YTM = %
6.Hard
half-years0123…24€1 464€35€35€35 + €1 000

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 12 years. It sells for €1 464. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 7% (2×)n = 12P = €1 464
YTM = %

Answer key

  1. 1. P = 865.3 €
  2. 2. P = 942.5 €
  3. 3. HPR = 7.561 %
  4. 4. P = 923.9 €
  5. 5. YTM = 3.008 %
  6. 6. YTM = 2.5 %

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