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 3% and matures in 7 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 3.5%n = 7

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €885. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €885

CY = %

3.Medium

A bond with a face value of €1 000 matures in 12 years and pays annual coupons. It sells for €1 168 when the yield to maturity is 6%. Find the coupon rate c in percent.

F = €1 000n = 12P = €1 168YTM = 6%

c = %

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 5.5%n = 9

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 9 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 9P = €1 075

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 4 years and sells for €935. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 4P = €935

YTM = %

Answer key

1. P = 969.4 €
2. CY = 3.39 %
3. c = 8.004 %
4. P = 964.9 €
5. YTM = 3.992 %
6. YTM = 7.961 %

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