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 19 years and nothing before. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000n = 19YTM = 7%

P = €

2.Easy

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

F = €1 000coupon = 7%YTM = 8%n = 7

P = €

3.Medium

You buy a bond with 8 years to maturity (face value €1 000, annual coupon 4%) when its yield to maturity is 7%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 6%. Find your holding period return HPR in percent.

F = €1 000coupon = 4%n = 8y₀ = 7%y₁ = 6%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 9%n = 10

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 10 years and sells for €1 085. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 10P = €1 085

YTM = %

6.Hard

A bond with 13 years to maturity (face value €1 000, annual coupon 7%) sells for €1 089. The issuer can call it in 3 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 089call price = €1 070call in 3 years

YTC = %

Answer key

1. P = 276.5 €
2. P = 947.9 €
3. HPR = 13.09 %
4. P = 739.8 €
5. YTM = 3.003 %
6. YTC = 5.879 %

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