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 with a face value of €1 000 matures in 5 years and costs €884 today. Find its yield to maturity YTM in percent.

F = €1 000n = 5P = €884

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and trades at €1 010. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 010

CY = %

3.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 8%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. Its yield to maturity changes from 6% to 7%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 4y₁ = 6%y₂ = 7%

ΔP = €

5.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 7%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 5YTM = 7%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 3 years and sells for €935. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 3P = €935

YTM = %

Answer key

1. YTM = 2.497 %
2. CY = 7.921 %
3. P = 650.4 €
4. ΔP = −34.65 €
5. D = 4.686 years
6. YTM = 7.499 %

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