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 8% and matures in 6 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 5.5%n = 6

P = €

2.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 = €

3.Medium

You buy a bond with 7 years to maturity (face value €1 000, annual coupon 5%) when its yield to maturity is 3%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 3.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 5%n = 7y₀ = 3%y₁ = 3.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 7

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 7 years and sells for €1 060. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 7P = €1 060

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. P = 1125 €
2. P = 747.3 €
3. HPR = 0.4733 %
4. P = 856.4 €
5. YTM = 4.964 %
6. YTM = 6.993 %

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