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 bond with a face value of €1 000 pays an annual coupon of 8% and matures in 9 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 5%n = 9

P = €

2.Easy

A zero-coupon bond pays €1 000 in 7 years and nothing before. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 6%

P = €

3.Medium

A bond with a face value of €1 000 matures in 10 years and pays annual coupons. It sells for €551 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 10P = €551YTM = 9%

c = %

4.Medium

A bond with a face value of €1 000 matures in 5 years and pays annual coupons. It sells for €840 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 5P = €840YTM = 8%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 5 years and sells for €1 045. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 5P = €1 045

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 7 years and sells for €1 135. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 7P = €1 135

YTM = %

Answer key

1. P = 1213 €
2. P = 665.1 €
3. c = 2.004 %
4. c = 3.993 %
5. YTM = 3.017 %
6. YTM = 0.994 %

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