HP 10bII+ Financial manual Bonds

Bonds

Bond calculations, primarily calculating bond price and yield, are performed by two keys,

]Ñand ]Ô. These keys permit you to input data or return results. Pressing ]Û

only calculates a result. The other keys used in bond calculations only permit you to input the data required for the calculations.

Table 1-26 Bond calculation keys

Keys	Description
]Oj	Clears bond memory.
]Û	Calculates accrued interest only.
]Ô	Yield% to maturity or yield% to call date for
	given price.
]Ñ	Price per 100.00 face value for a given yield.
]Î	Coupon rate stored as an annual %.
]Ë	Call value. Default is set for a call price per
	100.00 face value. A bond at maturity has a
	call value of 100% of its face value.
]È	Date format. Toggle between day-month-year
	(dd.mmyyyy) or month-day-year (mm.ddyyyy).
]Å	Day count calendar. Toggle between Actual
	(365-day calendar) or 360 (30-day month/
	360-day year calendar).
]Â	Bond coupon (payment). Toggle between
	semiannual and annual payment schedules.
]¾	Settlement date. Displays the current settlement
	date.
]°	Maturity date or call date. The call date must
	coincide with a coupon date. Displays the
	current maturity.

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 SEMI is not displayed, press ]Âto select the semiannual coupon payment. If D.MY is displayed, press ]Èto select M.DY format.

14 At a Glance...