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 5% and matures in 9 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3.5%n = 9

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 11 years and costs €527 today. Find its yield to maturity YTM in percent.

F = €1 000n = 11P = €527

YTM = %

3.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 8%n = 4

P = €

4.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 5.5% to 6.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 9y₁ = 5.5%y₂ = 6.5%

ΔP = €

5.Hard

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 7 years. It sells for €914. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 4% (2×)n = 7P = €914

YTM = %

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. P = 1114 €
2. YTM = 5.996 %
3. P = 882.2 €
4. ΔP = −71 €
5. YTM = 5.497 %
6. YTM = 9.472 %

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