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 2% and matures in 3 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 4%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 10 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 8%n = 5

P = €

4.Medium

A bond with a face value of €1 000 matures in 15 years and pays annual coupons. It sells for €727 when the yield to maturity is 7%. Find the coupon rate c in percent.

F = €1 000n = 15P = €727YTM = 7%

c = %

5.Hard

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 9 years. It sells for €1 150. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 6% (2×)n = 9P = €1 150

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 8 years and sells for €1 095. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €1 095

YTM = %

Answer key

1. P = 944.5 €
2. P = 1208 €
3. P = 797.2 €
4. c = 4.003 %
5. YTM = 3.999 %
6. YTM = 5.5 %

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