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 zero-coupon bond pays €1 000 in 5 years and nothing before. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000n = 5YTM = 6%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 8 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 8%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 5.5%n = 9

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 10 years. Its yield to maturity changes from 3% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 4%n = 10y₁ = 3%y₂ = 4.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 7 years and sells for €890. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 7P = €890

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 9 years and sells for €1 150. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 9P = €1 150

YTM = %

Answer key

1. P = 747.3 €
2. P = 712.7 €
3. P = 964.9 €
4. ΔP = −124.9 €
5. YTM = 5.968 %
6. YTM = 3.984 %

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