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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1.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and trades at €1 085. Find its current yield CY in percent.

F = €1 000coupon = 2%P = €1 085

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 8 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 4%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 9%n = 12

P = €

4.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 3% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 8

P = €

5.Hard

A bond trades at €1 010 with a yield to maturity of 4% (annual compounding) and a Macaulay duration of 10 years. Use the modified duration to estimate the new price P if the yield falls by 75 basis points.

P₀ = €1 010y = 4%D = 10Δy = −75 bp

P = €

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 7 years and sells for €865. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 7P = €865

YTM = %

Answer key

1. CY = 1.843 %
2. P = 1135 €
3. P = 782.6 €
4. P = 1212 €
5. P = 1083 €
6. YTM = 6.458 %

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