maturity, the CALL value must equal 100. (See step 3.)

8.To calculate a result, first press to access the remaining menu labels. Do either a or b:

a.Key in the yield and press . Press to calculate the price.

b.Key in the price and press . Press to calculate the yield.

To calculate the accrued interest, press . The total amount owed vthe seller is PRICE + ACCRU, that is: + =.

Calculating Fractional Values. When given a fractional value that must be entered in decimal form, do the arithmetic and then store the result directly into a variable. Do not clear the arithmetic and then retype the result before storing it—this is an unnecessary step that can cause incorrect answers due to rounding. See how the following example stores 83/8 in YLD%.

Example: Price and Yield of a Bond. What price should you pay on August 10, 2003 for a 6¾% U.S. Treasury bond that matures on May 1, 2018 if you wish a yield of 83/8%? The calendar basis is actual/actual and the coupon payments are semi-annual. (The example assumes MM.DDYYYY date format.)

Keys:

Display:

Description:

 

 

 

 

Since there is no call on

 

 

@c

 

this bond, set CALL = 100

 

 

 

 

 

by clearing variables.

 

 

 

Sets bond type, if

 

 

 

necessary.

e

 

8.102003

Stores settlement

 

 

(purchase) date.

 



 

 

 

 

 

 

5.012018

Stores maturity date.

8: Bonds 111

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9