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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Name: ____________________   Date: ____________

1.Easy
years0123…9€30€30€30 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 9 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 2.5%n = 9
P = €
2.Easy
years0123…8€60€60€60 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 8 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 8
P = €
3.Medium
half-years0123456€15€15€15 + €1 000P = ?

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 7%n = 3
P = €
4.Medium
years0123…12P€45€45€45 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 4.5% and matures in 12 years. Its yield to maturity changes from 8% to 7.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 4.5%n = 12y1 = 8%y2 = 7.5%
ΔP = €
5.Hard
half-years0123…24€710€25€25€25 + €1 000

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 12 years. It sells for €710. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 5% (2×)n = 12P = €710
YTM = %
6.Hard
half-years0123…8€1 056€25€25€25 + €1 000

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 4 years. It sells for €1 056. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 5% (2×)n = 4P = €1 056
YTM = %

Answer key

  1. 1. P = 1040 €
  2. 2. P = 1211 €
  3. 3. P = 893.4 €
  4. 4. ΔP = 31.7 €
  5. 5. YTM = 9.002 %
  6. 6. YTM = 3.488 %

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