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 6% and matures in 7 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 7

P = €

2.Easy

A zero-coupon bond pays €1 000 in 16 years and nothing before. The yield to maturity is 4.5% per year. Find the price P of the bond.

F = €1 000n = 16YTM = 4.5%

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

F = €1 000coupon = 3%YTM = 3.5%n = 4

P = €

4.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 4%n = 7

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 6 years. The yield to maturity is 3%. Find the Macaulay duration D in years.

F = €1 000coupon = 8%n = 6YTM = 3%

D = years

6.Hard

A bond with 19 years to maturity (face value €1 000, annual coupon 6%) sells for €1 121. The issuer can call it in 5 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 121call price = €1 060call in 5 years

YTC = %

Answer key

1. P = 1187 €
2. P = 494.5 €
3. P = 981.5 €
4. P = 1121 €
5. D = 5.118 years
6. YTC = 4.355 %

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