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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 9 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 5%n = 9

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 14 years and costs €492 today. Find its yield to maturity YTM in percent.

F = €1 000n = 14P = €492

YTM = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 15 years. Its yield to maturity changes from 3% to 3.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 15y₁ = 3%y₂ = 3.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 10 years. Its yield to maturity changes from 3.5% to 2.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 5%n = 10y₁ = 3.5%y₂ = 2.5%

ΔP = €

5.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 €1 057. 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 = €1 057

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 10 years and sells for €885. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 10P = €885

YTM = %

Answer key

1. P = 928.9 €
2. YTM = 5.197 %
3. ΔP = −78.61 €
4. ΔP = 94.05 €
5. YTM = 2.515 %
6. YTM = 5.528 %

Full step-by-step solutions: practise this topic on examproblems.com.