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 8% and matures in 10 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 8%YTM = 4%n = 10

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 10 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 5.5%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 11 years. Its yield to maturity changes from 8% to 9.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 5%n = 11y₁ = 8%y₂ = 9.5%

ΔP = €

4.Medium

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

F = €1 000coupon = 3%YTM = 8%n = 3

P = €

5.Hard

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 11 years. It sells for €1 204. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 11P = €1 204

YTM = %

6.Hard

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 4 years. The yield to maturity is 9%. Find the Macaulay duration D in years.

F = €1 000coupon = 6%n = 4YTM = 9%

D = years

Answer key

1. P = 1324 €
2. P = 1113 €
3. ΔP = −84.96 €
4. P = 868.9 €
5. YTM = 5.503 %
6. D = 3.654 years

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