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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A zero-coupon bond with a face value of €1 000 matures in 4 years and costs €786 today. Find its yield to maturity YTM in percent.

F = €1 000n = 4P = €786

YTM = %

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 9 years and costs €592 today. Find its yield to maturity YTM in percent.

F = €1 000n = 9P = €592

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 6 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3.5%n = 6

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. Its yield to maturity changes from 3% to 1.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 4y₁ = 3%y₂ = 1.5%

ΔP = €

5.Hard

A bond with 18 years to maturity (face value €1 000, annual coupon 8%) sells for €1 217. The issuer can call it in 4 years at a call price of €1 080. Find the yield to call YTC in percent.

F = €1 000coupon = 8%P = €1 217call price = €1 080call in 4 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 3 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 3P = €945

YTM = %

Answer key

1. YTM = 6.205 %
2. YTM = 5.998 %
3. P = 1188 €
4. ΔP = 63.31 €
5. YTC = 3.919 %
6. YTM = 5.02 %

Full step-by-step solutions: practise this topic on examproblems.com.