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
years012345€1 090€70€70€70 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 7% and trades at €1 090. Find its current yield CY in percent.

F = €1 000coupon = 7%P = €1 090
CY = %
2.Easy
years012€939€1 000

A zero-coupon bond with a face value of €1 000 matures in 2 years and costs €939 today. Find its yield to maturity YTM in percent.

F = €1 000n = 2P = €939
YTM = %
3.Medium
years0123…14€907C = ?C = ?C = ? + €1 000

A bond with a face value of €1 000 matures in 14 years and pays annual coupons. It sells for €907 when the yield to maturity is 6%. Find the coupon rate c in percent.

F = €1 000n = 14P = €907YTM = 6%
c = %
4.Medium
years0123…14P€30€30€30 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 14 years. Its yield to maturity changes from 9% to 9.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 14y1 = 9%y2 = 9.5%
ΔP = €
5.Hard
years01234€965€60€60 + €1 000

A bond with a face value of €1 000 and an annual coupon of 6% matures in 4 years and sells for €965. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 4P = €965
YTM = %
6.Hard
years01234567€1 080€80€80 + €1 000

A bond with a face value of €1 000 and an annual coupon of 8% matures in 7 years and sells for €1 080. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 7P = €1 080
YTM = %

Answer key

  1. 1. CY = 6.422 %
  2. 2. YTM = 3.197 %
  3. 3. c = 4.999 %
  4. 4. ΔP = −25 €
  5. 5. YTM = 7.034 %
  6. 6. YTM = 6.539 %

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