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 zero-coupon bond pays €1 000 in 13 years and nothing before. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000n = 13YTM = 6%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 6 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 5%n = 6

P = €

3.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 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 11

P = €

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 7%n = 6

P = €

5.Hard

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 4 years. It sells for €927. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 2% (2×)n = 4P = €927

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 8 years and sells for €1 140. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 8P = €1 140

YTM = %

Answer key

1. P = 468.8 €
2. P = 1051 €
3. P = 1227 €
4. P = 903.4 €
5. YTM = 3.993 %
6. YTM = 3.005 %

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