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 2% and matures in 3 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 7%n = 3

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 5 years and costs €863 today. Find its yield to maturity YTM in percent.

F = €1 000n = 5P = €863

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 5.5%n = 12

P = €

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 2.5%n = 5

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 6 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 6P = €1 075

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 5 years and sells for €1 065. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 5P = €1 065

YTM = %

Answer key

1. P = 868.8 €
2. YTM = 2.991 %
3. P = 1044 €
4. P = 1117 €
5. YTM = 5.499 %
6. YTM = 5.479 %

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