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 2% and matures in 3 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 8%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 7 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 5.5%n = 7

P = €

3.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 2.5%n = 5

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 8 years. Its yield to maturity changes from 3.5% to 3%. By how much ΔP does the bond price change?

F = €1 000coupon = 8%n = 8y₁ = 3.5%y₂ = 3%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 9 years and sells for €885. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 9P = €885

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 7 years and sells for €880. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 7P = €880

YTM = %

Answer key

1. P = 845.4 €
2. P = 1028 €
3. P = 1117 €
4. ΔP = 41.66 €
5. YTM = 9.997 %
6. YTM = 10.51 %

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