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 trades at €930. Find its current yield CY in percent.

F = €1 000coupon = 5%P = €930

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 3 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 3

P = €

3.Medium

You buy a bond with 5 years to maturity (face value €1 000, annual coupon 7%) when its yield to maturity is 5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 4.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 7%n = 5y₀ = 5%y₁ = 4.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 5% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 3%n = 4

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 8 years and sells for €1 130. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 8P = €1 130

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 6% matures in 8 years and sells for €940. Find its yield to maturity YTM in percent.

F = €1 000coupon = 6%n = 8P = €940

YTM = %

Answer key

1. CY = 5.376 %
2. P = 1070 €
3. HPR = 6.727 %
4. P = 1075 €
5. YTM = 4.989 %
6. YTM = 7.005 %

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