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 matures in 6 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 8%n = 6

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 9 years. The yield to maturity is 6%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 6%n = 9

P = €

3.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 6%n = 10

P = €

4.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 2.5%n = 4

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 4 years and sells for €915. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 4P = €915

YTM = %

6.Hard

A bond with 12 years to maturity (face value €1 000, annual coupon 8%) sells for €1 079. The issuer can call it in 4 years at a call price of €1 080. Find the yield to call YTC in percent.

F = €1 000coupon = 8%P = €1 079call price = €1 080call in 4 years

YTC = %

Answer key

1. P = 838.2 €
2. P = 932 €
3. P = 925.6 €
4. P = 1076 €
5. YTM = 6.48 %
6. YTC = 7.435 %

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