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 4% and trades at €1 090. Find its current yield CY in percent.

F = €1 000coupon = 4%P = €1 090

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 8 years and pays annual coupons. It sells for €1 103 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 8P = €1 103YTM = 3.5%

c = %

4.Medium

A bond with a face value of €1 000 pays a 7% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 3% per year. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 3%n = 7

P = €

5.Hard

A bond with 12 years to maturity (face value €1 000, annual coupon 9%) sells for €1 204. The issuer can call it in 6 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 204call price = €1 090call in 6 years

YTC = %

6.Hard

A bond with 10 years to maturity (face value €1 000, annual coupon 9%) sells for €1 067. The issuer can call it in 3 years at a call price of €1 090. Find the yield to call YTC in percent.

F = €1 000coupon = 9%P = €1 067call price = €1 090call in 3 years

YTC = %

Answer key

1. CY = 3.67 %
2. P = 1190 €
3. c = 4.998 %
4. P = 1251 €
5. YTC = 6.122 %
6. YTC = 9.092 %

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