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 9 years. The yield to maturity is 7%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 7%n = 9

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 4 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 3.5%n = 4

P = €

3.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 4 years. The yield to maturity is 2.5% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 2.5%n = 4

P = €

4.Medium

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

F = €1 000coupon = 5%YTM = 3%n = 5

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 7 years and sells for €1 115. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 7P = €1 115

YTM = %

6.Hard

A bond with 13 years to maturity (face value €1 000, annual coupon 7%) sells for €1 089. The issuer can call it in 6 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 089call price = €1 070call in 6 years

YTC = %

Answer key

1. P = 869.7 €
2. P = 981.6 €
3. P = 1132 €
4. P = 1092 €
5. YTM = 5.012 %
6. YTC = 6.179 %

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