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 5% and matures in 8 years. The yield to maturity is 8%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 8%n = 8

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and trades at €1 145. Find its current yield CY in percent.

F = €1 000coupon = 5%P = €1 145

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 8 years. Its yield to maturity changes from 8% to 9%. By how much ΔP does the bond price change?

F = €1 000coupon = 2%n = 8y₁ = 8%y₂ = 9%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 5 years and pays annual coupons. It sells for €860 when the yield to maturity is 8%. Find the coupon rate c in percent.

F = €1 000n = 5P = €860YTM = 8%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 5 years and sells for €1 085. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 5P = €1 085

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 5 years. The yield to maturity is 9%. Find the Macaulay duration D in years.

F = €1 000coupon = 7%n = 5YTM = 9%

D = years

Answer key

1. P = 827.6 €
2. CY = 4.367 %
3. ΔP = −42.64 €
4. c = 4.494 %
5. YTM = 5.035 %
6. D = 4.359 years

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