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 8 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 8%n = 8

P = €

2.Easy

A zero-coupon bond pays €1 000 in 4 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 4YTM = 3.5%

P = €

3.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 6

P = €

4.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 3.5%n = 6

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 6 years. The yield to maturity is 8%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 6YTM = 8%

D = years

6.Hard

A bond with 19 years to maturity (face value €1 000, annual coupon 5%) sells for €1 286. The issuer can call it in 4 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 286call price = €1 050call in 4 years

YTC = %

Answer key

1. P = 655.2 €
2. P = 871.4 €
3. P = 873.7 €
4. P = 1242 €
5. D = 5.509 years
6. YTC = 50 %

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