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 4.5% and trades at €1 070. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €1 070

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 8 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 3%n = 11

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 5 years. Its yield to maturity changes from 3% to 5%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 5y₁ = 3%y₂ = 5%

ΔP = €

5.Hard

A bond trades at €1 060 with a yield to maturity of 6% (annual compounding) and a Macaulay duration of 3.2 years. Use the modified duration to estimate the new price P if the yield rises by 100 basis points.

P₀ = €1 060y = 6%D = 3.2Δy = +100 bp

P = €

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 8 years and sells for €900. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 8P = €900

YTM = %

Answer key

1. CY = 4.206 %
2. P = 967.7 €
3. P = 1093 €
4. ΔP = −94.1 €
5. P = 1028 €
6. YTM = 4.517 %

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