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 6% and trades at €980. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €980

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 5 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 7%n = 5

P = €

3.Medium

A bond with a face value of €1 000 matures in 14 years and pays annual coupons. It sells for €1 226 when the yield to maturity is 3%. Find the coupon rate c in percent.

F = €1 000n = 14P = €1 226YTM = 3%

c = %

4.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 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 5.5%n = 11

P = €

5.Hard

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 7 years. It sells for €727. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 2% (2×)n = 7P = €727

YTM = %

6.Hard

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 3 years. It sells for €1 028. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4.5% (2×)n = 3P = €1 028

YTM = %

Answer key

1. CY = 6.122 %
2. P = 795 €
3. c = 5.001 %
4. P = 877.4 €
5. YTM = 7 %
6. YTM = 3.509 %

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