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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 5 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 4%n = 5

P = €

2.Easy

A zero-coupon bond pays €1 000 in 8 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 8YTM = 3.5%

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 7 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3%n = 7

P = €

4.Medium

A bond with a face value of €1 000 pays a 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 = 5%YTM = 3.5%n = 9

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 10 years and sells for €1 190. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 10P = €1 190

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 10 years and sells for €905. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 10P = €905

YTM = %

Answer key

1. P = 955.5 €
2. P = 759.4 €
3. P = 1125 €
4. P = 1115 €
5. YTM = 0.9945 %
6. YTM = 9.514 %

Full step-by-step solutions: practise this topic on examproblems.com.