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

F = €1 000coupon = 7%YTM = 3%n = 4

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 8 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 8

P = €

3.Medium

A bond with a face value of €1 000 pays a 4% annual coupon in two half-yearly payments and matures in 10 years. The yield to maturity is 8% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 8%n = 10

P = €

4.Medium

A bond with a face value of €1 000 matures in 9 years and pays annual coupons. It sells for €813 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 9P = €813YTM = 8%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 10 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 10P = €1 075

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 4 years and sells for €930. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 4P = €930

YTM = %

Answer key

1. P = 1149 €
2. P = 1251 €
3. P = 728.2 €
4. c = 5.007 %
5. YTM = 5.982 %
6. YTM = 6.021 %

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