Doing Bond Calculations
Remember that values in the BOND menu are expressed per $100 face value or as a percentage. A CALL value of 102 means that the bond will be worth $102 for every $100 of face value when called. Some corporate bonds in the United States use the convention that the price of the bond is set to 100 if the coupon rate equals the yield, whether or not the settlement date is a coupon date. The BOND menu does not use this convention.
To calculate the price or yield of a bond:
1.Display the BOND menu: press .
2.Press @c. This sets CALL=100.
3.Define the type of bond. If the message in the display does not match the type you want, press .
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Pressing sets the calendar basis to a
Pressing sets the calendar basis to the actual calendar month and to the actual calendar year.
Pressing sets
Pressing sets annual coupon payments.
Press eto restore the BOND menu.
4.Key in the settlement date (MM.DDYYYY or DD.MMYYYY depending on the date format; see chapter 11) and press .
5.Key in the maturity date or call date and press .
6.Key in the coupon rate as an annual percent and press .
7.Key in the call value, if any, and press . For a bond held to
110 8: Bonds
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