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
years012345€1 055€60€60€60 + €1 000

A bond with a face value of €1 000 pays an annual coupon of 6% and trades at €1 055. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €1 055
CY = %
2.Easy
years0123…15P = ?€1 000

A zero-coupon bond pays €1 000 in 15 years and nothing before. The yield to maturity is 2% per year. Find the price P of the bond.

F = €1 000n = 15YTM = 2%
P = €
3.Medium
half-years0123…10€20€20€20 + €1 000P = ?

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 7%n = 5
P = €
4.Medium
years0123…14€533C = ?C = ?C = ? + €1 000

A bond with a face value of €1 000 matures in 14 years and pays annual coupons. It sells for €533 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 14P = €533YTM = 9%
c = %
5.Hard
years01234€1 040€30€30 + €1 000

A bond with a face value of €1 000 and an annual coupon of 3% matures in 4 years and sells for €1 040. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 4P = €1 040
YTM = %
6.Hard
years0123…8€945€70€70 + €1 000

A bond with a face value of €1 000 and an annual coupon of 7% matures in 8 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €945
YTM = %

Answer key

  1. 1. CY = 5.687 %
  2. 2. P = 743 €
  3. 3. P = 875.3 €
  4. 4. c = 3.002 %
  5. 5. YTM = 1.951 %
  6. 6. YTM = 7.955 %

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