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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Name: ____________________ Date: ____________

1.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 5 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 9%n = 5

P = €

2.Easy

A zero-coupon bond pays €1 000 in 10 years and nothing before. The yield to maturity is 2% per year. Find the price P of the bond.

F = €1 000n = 10YTM = 2%

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 9 years. The yield to maturity is 6% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 6%n = 9

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 9 years. Its yield to maturity changes from 8% to 6%. By how much ΔP does the bond price change?

F = €1 000coupon = 4%n = 9y₁ = 8%y₂ = 6%

ΔP = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 10 years and sells for €830. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 10P = €830

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 3 years. The yield to maturity is 9%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 3YTM = 9%

D = years

Answer key

1. P = 961.1 €
2. P = 820.3 €
3. P = 793.7 €
4. ΔP = 113.8 €
5. YTM = 7.474 %
6. D = 2.803 years

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