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 4% and matures in 3 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 7%n = 3

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 9%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 9%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 4 years. Its yield to maturity changes from 5% to 6.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 4y₁ = 5%y₂ = 6.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 8%n = 9

P = €

5.Hard

A bond trades at €980 with a yield to maturity of 6% (annual compounding) and a Macaulay duration of 8.1 years. Use the modified duration to estimate the new price P if the yield rises by 150 basis points.

P₀ = €980y = 6%D = 8.1Δy = +150 bp

P = €

6.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 4 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 4P = €1 075

YTM = %

Answer key

1. P = 921.3 €
2. P = 935.8 €
3. ΔP = −48.98 €
4. P = 620.2 €
5. P = 867.7 €
6. YTM = 2.983 %

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