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 zero-coupon bond with a face value of €1 000 matures in 2 years and costs €957 today. Find its yield to maturity YTM in percent.

F = €1 000n = 2P = €957

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 7 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 5%n = 7

P = €

3.Medium

You buy a bond with 10 years to maturity (face value €1 000, annual coupon 5%) when its yield to maturity is 2.5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 3.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 5%n = 10y₀ = 2.5%y₁ = 3.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 6 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 = 6

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 6 years and sells for €875. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 6P = €875

YTM = %

6.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 9%) sells for €1 082. The issuer can call it in 5 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 082call price = €1 090call in 5 years

YTC = %

Answer key

1. YTM = 2.222 %
2. P = 826.4 €
3. HPR = −4.487 %
4. P = 1025 €
5. YTM = 5.502 %
6. YTC = 8.443 %

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