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

A zero-coupon bond pays €1 000 in 7 years and nothing before. The yield to maturity is 4.5% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 4.5%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and trades at €1 050. Find its current yield CY in percent.

F = €1 000coupon = 5%P = €1 050

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 13 years. Its yield to maturity changes from 7% to 9%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 13y₁ = 7%y₂ = 9%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 10 years and pays annual coupons. It sells for €615 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 10P = €615YTM = 9%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 9 years and sells for €1 115. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 9P = €1 115

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 5 years. The yield to maturity is 5%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 5YTM = 5%

D = years

Answer key

1. P = 734.8 €
2. CY = 4.762 %
3. ΔP = −141 €
4. c = 3.001 %
5. YTM = 3.489 %
6. D = 4.702 years

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