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 6% and matures in 5 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 8%n = 5

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 8 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 9%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 10 years. Its yield to maturity changes from 4% to 5.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 10y₁ = 4%y₂ = 5.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 4%n = 9

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 4 years. The yield to maturity is 7%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 4YTM = 7%

D = years

6.Hard

A bond with 11 years to maturity (face value €1 000, annual coupon 7%) sells for €1 213. The issuer can call it in 6 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 213call price = €1 070call in 6 years

YTC = %

Answer key

1. P = 920.1 €
2. P = 889.3 €
3. ΔP = −124.5 €
4. P = 850.1 €
5. D = 3.814 years
6. YTC = 3.993 %

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