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 4.5% and trades at €1 055. Find its current yield CY in percent.

F = €1 000coupon = 4.5%P = €1 055

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 7 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 5%n = 7

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 5 years. The yield to maturity is 5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5%n = 5

P = €

4.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 2.5%n = 6

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 9 years and sells for €1 110. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 9P = €1 110

YTM = %

6.Hard

A bond with 17 years to maturity (face value €1 000, annual coupon 7%) sells for €1 225. The issuer can call it in 4 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 225call price = €1 070call in 4 years

YTC = %

Answer key

1. CY = 4.265 %
2. P = 1058 €
3. P = 912.5 €
4. P = 1249 €
5. YTM = 4.488 %
6. YTC = 2.675 %

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