HP 10bII+ Financial manual S7YGG, V7VÎ, Jyë, Jjñ

Table 10-2 Bond calculation example

Keys	Display	Description
S7:YG:G:	6-4-2020 4	Inputs June 4, 2020 for the maturity date.
]°
S7jV]Î	6.75	Inputs 6.75% for the value for CPN%.
J::]Ë	100.00	Inputs call value. Optional, as default is
		100. Note: if Call requires another value,
		key in the number followed by
		]Ë.
Y7jV]Ô	4.75	Inputs 4.75% for Yield%.
]Ñ	115.89	Calculates the price.
1]Û	2.69	Displays the current value for accrued
		interest.
4	118.58	Returns the result for total price (value of
		price + value of accrued interest). The

net price you should pay for the bond is 118.58.

Example 2

A bond has a call provision at 104 and a coupon rate of 5.5%. If the bond matures on October 15, 2020 and is presently selling at 101, what is the yield-to-call on April 15, 2012? Assume the bond is calculated on a semiannual coupon payment on an actual/actual basis.

Table 10-3

KeysDisplay Description

]Oj	BOND CLR	Clears bond memory.
	(message flashes, then
	disappears)
V7V]Î	5.50	Inputs coupon rate as an annual%.
J:Y]Ë	104.00	Inputs call value.
J:J]Ñ	101.00	Inputs price.

Bonds 107