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 14 years and nothing before. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000n = 14YTM = 5%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and trades at €1 015. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 015

CY = %

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 11

P = €

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 7%n = 7

P = €

5.Hard

A bond with 15 years to maturity (face value €1 000, annual coupon 6%) sells for €1 288. The issuer can call it in 6 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 288call price = €1 060call in 6 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 4 years and sells for €1 070. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 4P = €1 070

YTM = %

Answer key

1. P = 505.1 €
2. CY = 7.882 %
3. P = 1335 €
4. P = 890.8 €
5. YTC = 1.841 %
6. YTM = 5.025 %

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