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 trades at €1 055. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 055

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and trades at €1 135. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €1 135

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 9 years. Its yield to maturity changes from 5% to 4%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 9y₁ = 5%y₂ = 4%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 3%n = 5

P = €

5.Hard

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

F = €1 000coupon = 4%n = 3YTM = 3%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 5 years and sells for €905. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 5P = €905

YTM = %

Answer key

1. CY = 7.583 %
2. CY = 7.048 %
3. ΔP = 80.9 €
4. P = 1231 €
5. D = 2.888 years
6. YTM = 9.472 %

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