Bond Valuation Practice

Bond Valuation Practice Exercises

Test your understanding of bond valuation principles through interactive practice questions

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Question 1: Bond Price Calculation

A 5-year corporate bond with a face value of $1,000 pays a 6% annual coupon and has a yield to matur...

Beginner

Question 2: Zero-Coupon Bond Pricing

What is the price of a 10-year zero-coupon bond with a face value of $100,000 trading at a yield to ...

Beginner

Question 3: Duration Calculation

A bond has a modified duration of 7.5 years. If market interest rates increase by 50 basis points (0...

Intermediate

Question 4: Yield to Maturity

A bond is currently priced at $950, has a face value of $1,000, 3 years to maturity, and pays $60 an...

Intermediate

Question 5: Convexity Effect

Compared to duration alone, how does convexity affect bond price estimates when yields change signif...

Advanced

Question 6: Credit Spread Impact

A corporate bond has a credit spread of 200 basis points over Treasuries. If Treasury yields increas...

Intermediate

Question 7: Callable Bond Valuation

Why do callable bonds typically offer higher yields than comparable non-callable bonds?...

Advanced

Question 8: Bond Portfolio Strategy

An investor expecting rising interest rates should focus on bonds with:...

Intermediate

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