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 3% and matures in 7 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 7

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and trades at €1 060. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 060

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 14 years. Its yield to maturity changes from 4% to 3.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 14y₁ = 4%y₂ = 3.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 5 years. Its yield to maturity changes from 2.5% to 1.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 5y₁ = 2.5%y₂ = 1.5%

ΔP = €

5.Hard

A bond with 13 years to maturity (face value €1 000, annual coupon 6%) sells for €1 258. The issuer can call it in 3 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 258call price = €1 060call in 3 years

YTC = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 3 years. The yield to maturity is 2.5%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 3YTM = 2.5%

D = years

Answer key

1. P = 857.9 €
2. CY = 7.547 %
3. ΔP = 61.75 €
4. ΔP = 48.51 €
5. YTC = 50 %
6. D = 2.82 years

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