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 bond with a face value of €1 000 pays an annual coupon of 3% and trades at €1 125. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €1 125

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 9 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 9

P = €

3.Medium

A bond with a face value of €1 000 matures in 9 years and pays annual coupons. It sells for €1 190 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 9P = €1 190YTM = 3.5%

c = %

4.Medium

A bond with a face value of €1 000 matures in 13 years and pays annual coupons. It sells for €1 052 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 13P = €1 052YTM = 3.5%

c = %

5.Hard

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 6 years. The yield to maturity is 5.5%. Find the Macaulay duration D in years.

F = €1 000coupon = 3%n = 6YTM = 5.5%

D = years

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 4 years and sells for €935. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 4P = €935

YTM = %

Answer key

1. CY = 2.667 %
2. P = 1190 €
3. c = 5.997 %
4. c = 4.005 %
5. D = 5.545 years
6. YTM = 9.007 %

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