HP 10bII+ Financial manual Y7GgGJ, Example

When entering data for bond calculations, results are calculated based on data entered into specific memory registers. When pressed, the keys used for these operations:

•store data.

•enter data for variables used during calculations (input only).

•calculate unknown variables based on stored data.

Most of the other keys used in bond calculations allow you to enter data for a variable, but

you cannot solve for that variable. The exception is the ]Ûkey. This key permits you to return results for accumulated interest, but you cannot enter data into this key.

Before you perform a bond calculation, be sure to verify the date format is set appropriately for your problem. The default setting is mm.ddyyyy, but it can be set for dd.mmyyyy. For more information about entering dates and date formats, see chapter 9, Calendar Formats and Date Calculations. The range of acceptable dates is October 15, 1582 to December 31, 9999. Verify that bond day counts (360/365) and annual or semiannual coupon payment schedules are appropriate for your problem prior to inputting your data.

Example 1

What price should you pay on April 28, 2010 for a 6.75% U.S. Treasury bond maturing on June 4, 2020, if you want a yield of 4.75%? Assume the bond is calculated on a semiannual

coupon payment on an actual/actual basis. If D.MY is displayed, press ]Èbefore beginning. See Table .

Table 10-2 Bond calculation example

KeysDisplay Description

]Oj	BOND CLR	Clears bond memory.
	(message flashes, then
	disappears)
]Â	0.00	Selects semiannual coupon payment, as
		required by the example. Note the
		annunciator in the display.
Y7GgG:J:	4-28-2010 3	date (mm.ddyyyy format). Note: the 3 in
		Inputs April 28, 2010 for the settlement
]¾		the far right of the display indicates the
		day of the week. This number indicates
		the day of the week corresponding to
		that date. Monday
		is 1, and Sunday is 7. April 4, 2010 is a
		Wednesday.

106 Bonds