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 bond with a face value of €1 000 pays an annual coupon of 8% and trades at €935. Find its current yield CY in percent.

F = €1 000coupon = 8%P = €935

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 4 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3.5%n = 4

P = €

3.Medium

A bond with a face value of €1 000 matures in 10 years and pays annual coupons. It sells for €615 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 10P = €615YTM = 9%

c = %

4.Medium

You buy a bond with 3 years to maturity (face value €1 000, annual coupon 4%) when its yield to maturity is 7%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 6.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 4%n = 3y₀ = 7%y₁ = 6.5%

HPR = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 4 years and sells for €1 055. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 4P = €1 055

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 5 years. The yield to maturity is 7%. Find the Macaulay duration D in years.

F = €1 000coupon = 4%n = 5YTM = 7%

D = years

Answer key

1. CY = 8.556 %
2. P = 1129 €
3. c = 3.001 %
4. HPR = 7.947 %
5. YTM = 4.468 %
6. D = 4.601 years

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