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 6 years. The yield to maturity is 4%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 4%n = 6

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 6% and matures in 6 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3%n = 6

P = €

3.Medium

A bond with a face value of €1 000 matures in 6 years and pays annual coupons. It sells for €1 080 when the yield to maturity is 3.5%. Find the coupon rate c in percent.

F = €1 000n = 6P = €1 080YTM = 3.5%

c = %

4.Medium

A bond with a face value of €1 000 pays a 6% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 4%n = 7

P = €

5.Hard

A bond with 11 years to maturity (face value €1 000, annual coupon 8%) sells for €1 202. The issuer can call it in 4 years at a call price of €1 080. Find the yield to call YTC in percent.

F = €1 000coupon = 8%P = €1 202call price = €1 080call in 4 years

YTC = %

6.Hard

A bond with a face value of €1 000 pays an 8% annual coupon in two half-yearly payments and matures in 4 years. It sells for €1 208. Find its yield to maturity YTM as an annual rate (twice the half-yearly yield), in percent.

F = €1 000coupon = 8% (2×)n = 4P = €1 208

YTM = %

Answer key

1. P = 1052 €
2. P = 1163 €
3. c = 5.001 %
4. P = 1121 €
5. YTC = 4.275 %
6. YTM = 2.503 %

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