## Bond Valuation Practice Problems

Created by Pamela Peterson Drake

1. The \$1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today?

2. The \$1,000 face value EFG bond has a coupon of 10% (paid semi-annually), matures in 4 years, and has current price of \$1,140. What is the EFG bond's yield to maturity?

3. The HIJ bond has a current price of \$800, a maturity value of \$1,000, and matures in 5 years. If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond's annual coupon rate?

4. The KLM bond has a 8% coupon rate,with interest paid semi-annually, a maturity value of \$1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price?

5. The NOP bond has an 8% coupon rate (semi-annual interest), a maturity value of \$1,000, matures in 5 years, and a current price of \$1,200. What is the NOP's yield-to-maturity?