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 9 years and costs €780 today. Find its yield to maturity YTM in percent.

F = €1 000n = 9P = €780

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 6 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5%n = 6

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 6 years. Its yield to maturity changes from 5.5% to 5%. By how much ΔP does the bond price change?

F = €1 000coupon = 5%n = 6y₁ = 5.5%y₂ = 5%

ΔP = €

4.Medium

You buy a bond with 5 years to maturity (face value €1 000, annual coupon 5%) when its yield to maturity is 6%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 7.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 5%n = 5y₀ = 6%y₁ = 7.5%

HPR = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 5 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 5P = €925

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 6 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 6P = €925

YTM = %

Answer key

1. YTM = 2.799 %
2. P = 898.5 €
3. ΔP = 24.98 €
4. HPR = 0.8759 %
5. YTM = 9.977 %
6. YTM = 4.452 %

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