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 zero-coupon bond pays €1 000 in 7 years and nothing before. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 7%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 8% and matures in 10 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 5.5%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 8%n = 3

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 9 years. Its yield to maturity changes from 5.5% to 4.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 6%n = 9y₁ = 5.5%y₂ = 4.5%

ΔP = €

5.Hard

A bond with 10 years to maturity (face value €1 000, annual coupon 9%) sells for €1 140. The issuer can call it in 3 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 140call price = €1 090call in 3 years

YTC = %

6.Hard

A bond with 11 years to maturity (face value €1 000, annual coupon 5%) sells for €1 135. The issuer can call it in 4 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 135call price = €1 050call in 4 years

YTC = %

Answer key

1. P = 622.7 €
2. P = 1188 €
3. P = 895.2 €
4. ΔP = 74.27 €
5. YTC = 6.524 %
6. YTC = 2.605 %

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