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 6% and matures in 5 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 5

P = €

2.Easy

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 price P of the bond.

F = €1 000coupon = 4.5%YTM = 6%n = 3

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 7 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 7%n = 7

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 10 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 7%n = 10

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 9 years and sells for €860. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 9P = €860

YTM = %

6.Hard

A bond with 13 years to maturity (face value €1 000, annual coupon 5%) sells for €1 100. The issuer can call it in 4 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 100call price = €1 050call in 4 years

YTC = %

Answer key

1. P = 1163 €
2. P = 959.9 €
3. P = 945.4 €
4. P = 786.8 €
5. YTM = 10.48 %
6. YTC = 3.467 %

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