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 3% and trades at €1 150. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €1 150

CY = %

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 13 years and costs €544 today. Find its yield to maturity YTM in percent.

F = €1 000n = 13P = €544

YTM = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 15 years. Its yield to maturity changes from 2.5% to 1.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 15y₁ = 2.5%y₂ = 1.5%

ΔP = €

4.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 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 2.5%n = 8

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 9 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 9P = €1 075

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 3 years and sells for €970. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 3P = €970

YTM = %

Answer key

1. CY = 2.609 %
2. YTM = 4.795 %
3. ΔP = 176.7 €
4. P = 963.9 €
5. YTM = 3.992 %
6. YTM = 4.083 %

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