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 €656 today. Find its yield to maturity YTM in percent.

F = €1 000n = 7P = €656

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 6 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 9%n = 6

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 10 years. Its yield to maturity changes from 8% to 6.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 4%n = 10y₁ = 8%y₂ = 6.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 11 years and pays annual coupons. It sells for €643 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 11P = €643YTM = 8%

c = %

5.Hard

A bond with 17 years to maturity (face value €1 000, annual coupon 5%) sells for €1 263. The issuer can call it in 3 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 263call price = €1 050call in 3 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 4 years and sells for €930. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 4P = €930

YTM = %

Answer key

1. YTM = 6.208 %
2. P = 798.1 €
3. ΔP = 88.68 €
4. c = 2.999 %
5. YTC = 50 %
6. YTM = 6.021 %

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