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 4 years and costs €786 today. Find its yield to maturity YTM in percent.

F = €1 000n = 4P = €786

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 6 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 6

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. Its yield to maturity changes from 4% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 4y₁ = 4%y₂ = 4.5%

ΔP = €

4.Medium

You buy a bond with 6 years to maturity (face value €1 000, annual coupon 3%) when its yield to maturity is 2.5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4%. Find your holding period return HPR in percent.

F = €1 000coupon = 3%n = 6y₀ = 2.5%y₁ = 4%

HPR = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 3 years and sells for €960. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 3P = €960

YTM = %

6.Hard

A bond with 11 years to maturity (face value €1 000, annual coupon 6%) sells for €1 225. The issuer can call it in 4 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 225call price = €1 060call in 4 years

YTC = %

Answer key

1. YTM = 6.205 %
2. P = 1193 €
3. ΔP = −19.21 €
4. HPR = −4.093 %
5. YTM = 8.568 %
6. YTC = 1.611 %

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