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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Name: ____________________ Date: ____________

1.Easy

A zero-coupon bond with a face value of €1 000 matures in 13 years and costs €415 today. Find its yield to maturity YTM in percent.

F = €1 000n = 13P = €415

YTM = %

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 15 years and costs €373 today. Find its yield to maturity YTM in percent.

F = €1 000n = 15P = €373

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 12 years. Its yield to maturity changes from 4% to 3.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 12y₁ = 4%y₂ = 3.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 3 years. It sells for €1 101. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 6% (2×)n = 3P = €1 101

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 6 years and sells for €905. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 6P = €905

YTM = %

Answer key

1. YTM = 6.999 %
2. YTM = 6.795 %
3. P = 869.4 €
4. ΔP = 53.88 €
5. YTM = 2.485 %
6. YTM = 6.993 %

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