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 zero-coupon bond pays €1 000 in 16 years and nothing before. The yield to maturity is 2% per year. Find the price P of the bond.

F = €1 000n = 16YTM = 2%

P = €

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 pays a 4% annual coupon in two half-yearly payments and matures in 3 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 3%n = 3

P = €

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 5.5% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 5.5%n = 5

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 9 years and sells for €1 070. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 9P = €1 070

YTM = %

6.Hard

A bond with 15 years to maturity (face value €1 000, annual coupon 6%) sells for €1 161. The issuer can call it in 4 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 161call price = €1 060call in 4 years

YTC = %

Answer key

1. P = 728.4 €
2. P = 1129 €
3. P = 1028 €
4. P = 892 €
5. YTM = 5.015 %
6. YTC = 3.091 %

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