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 6% and matures in 10 years. The yield to maturity is 3.5%. Find the price P of the bond.

F = €1 000coupon = 6%YTM = 3.5%n = 10

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 4% and matures in 8 years. The yield to maturity is 6%. Find the price P of the bond.

F = €1 000coupon = 4%YTM = 6%n = 8

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 4 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 3.5%n = 4

P = €

4.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 3.5% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3.5%n = 12

P = €

5.Hard

A bond with 17 years to maturity (face value €1 000, annual coupon 8%) sells for €1 272. The issuer can call it in 6 years at a call price of €1 080. Find the yield to call YTC in percent.

F = €1 000coupon = 8%P = €1 272call price = €1 080call in 6 years

YTC = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 3% matures in 8 years and sells for €1 075. Find its yield to maturity YTM in percent.

F = €1 000coupon = 3%n = 8P = €1 075

YTM = %

Answer key

1. P = 1208 €
2. P = 875.8 €
3. P = 1037 €
4. P = 854 €
5. YTC = 4.014 %
6. YTM = 1.977 %

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