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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Name: ____________________ Date: ____________

1.Easy

A zero-coupon bond pays €1 000 in 4 years and nothing before. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000n = 4YTM = 2.5%

P = €

2.Easy

A zero-coupon bond pays €1 000 in 13 years and nothing before. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000n = 13YTM = 3.5%

P = €

3.Medium

A bond with a face value of €1 000 matures in 8 years and pays annual coupons. It sells for €1 070 when the yield to maturity is 3%. Find the coupon rate c in percent.

F = €1 000n = 8P = €1 070YTM = 3%

c = %

4.Medium

A bond with a face value of €1 000 matures in 13 years and pays annual coupons. It sells for €723 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 13P = €723YTM = 8%

c = %

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 6 years. The yield to maturity is 5%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 6YTM = 5%

D = years

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 6 years. The yield to maturity is 3.5%. Find the Macaulay duration D in years.

F = €1 000coupon = 5%n = 6YTM = 3.5%

D = years

Answer key

1. P = 906 €
2. P = 639.4 €
3. c = 3.997 %
4. c = 4.495 %
5. D = 5.148 years
6. D = 5.358 years

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