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 7 years and nothing before. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000n = 7YTM = 4%

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €975. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €975

CY = %

3.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 8 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3%n = 8

P = €

4.Medium

A bond with a face value of €1 000 matures in 15 years and pays annual coupons. It sells for €889 when the yield to maturity is 4%. Find the coupon rate c in percent.

F = €1 000n = 15P = €889YTM = 4%

c = %

5.Hard

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 4 years. It sells for €1 208. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 4P = €1 208

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 10 years and sells for €1 090. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 10P = €1 090

YTM = %

Answer key

1. P = 759.9 €
2. CY = 3.077 %
3. P = 1283 €
4. c = 3.002 %
5. YTM = 2.503 %
6. YTM = 1.998 %

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