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 pays €1 000 in 8 years and nothing before. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000n = 8YTM = 3%

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 15 years and costs €572 today. Find its yield to maturity YTM in percent.

F = €1 000n = 15P = €572

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 6%n = 8

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 9 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 3.5%n = 9

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 3 years and sells for €1 055. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 3P = €1 055

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 6 years and sells for €1 100. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 6P = €1 100

YTM = %

Answer key

1. P = 789.4 €
2. YTM = 3.794 %
3. P = 905.8 €
4. P = 1077 €
5. YTM = 4.981 %
6. YTM = 5.028 %

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