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 zero-coupon bond with a face value of €1 000 matures in 15 years and costs €373 today. Find its yield to maturity YTM in percent.

F = €1 000n = 15P = €373

YTM = %

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 8 years. The yield to maturity is 6%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 6%n = 8

P = €

3.Medium

A bond with a face value of €1 000 matures in 6 years and pays annual coupons. It sells for €946 when the yield to maturity is 3%. Find the coupon rate c in percent.

F = €1 000n = 6P = €946YTM = 3%

c = %

4.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 9 years. The yield to maturity is 7% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 7%n = 9

P = €

5.Hard

A bond with 14 years to maturity (face value €1 000, annual coupon 7%) sells for €1 256. The issuer can call it in 4 years at a call price of €1 070. Find the yield to call YTC in percent.

F = €1 000coupon = 7%P = €1 256call price = €1 070call in 4 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 7% matures in 6 years and sells for €930. Find its yield to maturity YTM in percent.

F = €1 000coupon = 7%n = 6P = €930

YTM = %

Answer key

1. YTM = 6.795 %
2. P = 751.6 €
3. c = 2.003 %
4. P = 835.1 €
5. YTC = 1.979 %
6. YTM = 8.539 %

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