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 2% and matures in 8 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 5%n = 8

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and trades at €885. Find its current yield CY in percent.

F = €1 000coupon = 6%P = €885

CY = %

3.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 11 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 8%n = 11

P = €

4.Medium

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 3%n = 6

P = €

5.Hard

A bond with 11 years to maturity (face value €1 000, annual coupon 7%) sells for €1 121. The issuer can call it in 5 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 121call price = €1 070call in 5 years

YTC = %

6.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 8%) sells for €1 087. The issuer can call it in 5 years at a call price of €1 080. Find the yield to call YTC in percent.

F = €1 000coupon = 8%P = €1 087call price = €1 080call in 5 years

YTC = %

Answer key

1. P = 806.1 €
2. CY = 6.78 %
3. P = 566.5 €
4. P = 1273 €
5. YTC = 5.428 %
6. YTC = 7.248 %

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