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 3% and matures in 3 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 8%n = 3

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 7 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 8%n = 7

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

F = €1 000coupon = 3%YTM = 4%n = 11

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

F = €1 000coupon = 6%YTM = 3.5%n = 11

P = €

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 4 years. The yield to maturity is 9%. Find the Macaulay duration D in years.

F = €1 000coupon = 2%n = 4YTM = 9%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 8% matures in 5 years and sells for €1 060. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 5P = €1 060

YTM = %

Answer key

1. P = 871.1 €
2. P = 947.9 €
3. P = 911.7 €
4. P = 1227 €
5. D = 3.865 years
6. YTM = 6.554 %

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