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 4.5% and matures in 7 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 5%n = 7

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and trades at €950. Find its current yield CY in percent.

F = €1 000coupon = 4%P = €950

CY = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 6 years. Its yield to maturity changes from 9% to 8.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 2%n = 6y₁ = 9%y₂ = 8.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 matures in 15 years and pays annual coupons. It sells for €1 403 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 15P = €1 403YTM = 3.5%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 5 years and sells for €915. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 5P = €915

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 6 years and sells for €925. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 6P = €925

YTM = %

Answer key

1. P = 971.1 €
2. CY = 4.211 %
3. ΔP = 18.03 €
4. c = 6.999 %
5. YTM = 4.961 %
6. YTM = 5.501 %

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