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 4.5% and matures in 4 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 8%n = 4

P = €

2.Easy

A zero-coupon bond pays €1 000 in 20 years and nothing before. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000n = 20YTM = 3%

P = €

3.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 2.5%n = 6

P = €

4.Medium

A bond with a face value of €1 000 matures in 7 years and pays annual coupons. It sells for €740 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 7P = €740YTM = 8%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 10 years and sells for €1 110. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 10P = €1 110

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 7 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 7P = €925

YTM = %

Answer key

1. P = 884.1 €
2. P = 553.7 €
3. P = 1083 €
4. c = 3.006 %
5. YTM = 6.472 %
6. YTM = 8.463 %

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