Corporate Finance (FIN 201) Bond Pricing, YTM, and Duration Practice Problems
New York University
Corporate Finance (FIN 201) | Practice Problems

Overview
A practice packet for bond pricing, yield to maturity, price-yield relationships, and duration intuition to prepare for corporate finance final exams.

Key topics
•bond cash flows and pricing steps
•yield to maturity interpretation
•price-yield convexity intuition
•duration as interest-rate sensitivity

Suggested study tasks
•price 3 bonds with different coupons and maturities
•approximate YTM direction from price changes
•rank bonds by interest-rate risk using duration intuition

Common pitfalls
•discounting the coupon stream incorrectly
•confusing current yield with YTM
•assuming higher coupon always means higher risk