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 with a face value of €1 000 matures in 7 years and costs €853 today. Find its yield to maturity YTM in percent.

F = €1 000n = 7P = €853

YTM = %

2.Easy

A zero-coupon bond pays €1 000 in 11 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 11YTM = 3.5%

P = €

3.Medium

A bond with a face value of €1 000 matures in 9 years and pays annual coupons. It sells for €1 142 when the yield to maturity is 5%. Find the coupon rate c in percent.

F = €1 000n = 9P = €1 142YTM = 5%

c = %

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 9 years. Its yield to maturity changes from 3.5% to 2%. By how much ΔP does the bond price change?

F = €1 000coupon = 4%n = 9y₁ = 3.5%y₂ = 2%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 7 years and sells for €895. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 7P = €895

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 6 years. It sells for €1 106. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 6% (2×)n = 6P = €1 106

YTM = %

Answer key

1. YTM = 2.297 %
2. P = 684.9 €
3. c = 6.998 %
4. ΔP = 125.2 €
5. YTM = 8.018 %
6. YTM = 3.996 %

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