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
years01234€50€50€50 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 4 years. The yield to maturity is 9%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 9%n = 4
P = €
2.Easy
years0123…9€40€40€40 + €1 000P = ?

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 9 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 3%n = 9
P = €
3.Medium

You buy a bond with 11 years to maturity (face value €1 000, annual coupon 8%) when its yield to maturity is 2.5%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 3%. Find your holding period return HPR in percent.

F = €1 000coupon = 8%n = 11y0 = 2.5%y1 = 3%
HPR = %
4.Medium
half-years0123…18€40€40€40 + €1 000P = ?

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 3%n = 9
P = €
5.Hard
years0123…8€945€80€80 + €1 000

A bond with a face value of €1 000 and an annual coupon of 8% matures in 8 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 8%n = 8P = €945
YTM = %
6.Hard
half-years0123…20€1 074€35€35€35 + €1 000

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 10 years. It sells for €1 074. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 7% (2×)n = 10P = €1 074
YTM = %

Answer key

  1. 1. P = 870.4 €
  2. 2. P = 1078 €
  3. 3. HPR = −1.101 %
  4. 4. P = 1392 €
  5. 5. YTM = 8.993 %
  6. 6. YTM = 6.005 %

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