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 7% and matures in 5 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 5%n = 5

P = €

2.Easy

A zero-coupon bond pays €1 000 in 11 years and nothing before. The yield to maturity is 4.5% per year. Find the price P of the bond.

F = €1 000n = 11YTM = 4.5%

P = €

3.Medium

A bond with a face value of €1 000 pays a 4.5% 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 = 4.5%YTM = 7%n = 5

P = €

4.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 11

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 9 years and sells for €835. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 9P = €835

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. The yield to maturity is 4%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 4YTM = 4%

D = years

Answer key

1. P = 1087 €
2. P = 616.2 €
3. P = 896 €
4. P = 1279 €
5. YTM = 6.476 %
6. D = 3.645 years

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