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 with a face value of €1 000 matures in 5 years and costs €850 today. Find its yield to maturity YTM in percent.

F = €1 000n = 5P = €850

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and trades at €1 050. Find its current yield CY in percent.

F = €1 000coupon = 7%P = €1 050

CY = %

3.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 2.5%n = 8

P = €

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5%n = 4

P = €

5.Hard

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 5 years. It sells for €872. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 3% (2×)n = 5P = €872

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 6 years and sells for €895. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 6P = €895

YTM = %

Answer key

1. YTM = 3.304 %
2. CY = 6.667 %
3. P = 1180 €
4. P = 928.3 €
5. YTM = 6.001 %
6. YTM = 10.44 %

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