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 trades at €955. Find its current yield CY in percent.

F = €1 000coupon = 5%P = €955

CY = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 7 years. The yield to maturity is 5%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 5%n = 7

P = €

3.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 7%n = 12

P = €

4.Medium

A bond with a face value of €1 000 matures in 9 years and pays annual coupons. It sells for €880 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 9P = €880YTM = 9%

c = %

5.Hard

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 12 years. It sells for €746. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 3% (2×)n = 12P = €746

YTM = %

6.Hard

A bond trades at €1 015 with a yield to maturity of 3% (annual compounding) and a Macaulay duration of 6.2 years. Use the modified duration to estimate the new price P if the yield rises by 150 basis points.

P₀ = €1 015y = 3%D = 6.2Δy = +150 bp

P = €

Answer key

1. CY = 5.236 %
2. P = 942.1 €
3. P = 799.3 €
4. c = 6.998 %
5. YTM = 6 %
6. P = 923.4 €

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