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 5 years. The yield to maturity is 6%. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 6%n = 5

P = €

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 10 years and costs €837 today. Find its yield to maturity YTM in percent.

F = €1 000n = 10P = €837

YTM = %

3.Medium

You buy a bond with 10 years to maturity (face value €1 000, annual coupon 2%) when its yield to maturity is 8%. One year later, just after receiving the first coupon, you sell it when the yield to maturity is 8.5%. Find your holding period return HPR in percent.

F = €1 000coupon = 2%n = 10y₀ = 8%y₁ = 8.5%

HPR = %

4.Medium

A bond with a face value of €1 000 pays a 3% annual coupon in two half-yearly payments and matures in 5 years. The yield to maturity is 9% per year. Find the price P of the bond.

F = €1 000coupon = 3%YTM = 9%n = 5

P = €

5.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 7 years and sells for €1 095. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 7P = €1 095

YTM = %

6.Hard

A bond with 18 years to maturity (face value €1 000, annual coupon 5%) sells for €1 359. The issuer can call it in 3 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 359call price = €1 050call in 3 years

YTC = %

Answer key

1. P = 936.8 €
2. YTM = 1.795 %
3. HPR = 4.162 %
4. P = 762.6 €
5. YTM = 2.504 %
6. YTC = 50 %

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