HP 17bII manual Bonds

Reference: Joseph M. Belth, Life Insurance—A Consumer’s Handbook, Indiana University Press, 1973, p. 234.

Bonds

Example: Yield to Maturity and Yield to Call. On March 16, 2003 you consider the purchase of a $1,000 bond that was issued on January 1, 2001. It has a 10.5% semiannual coupon using a 30/360 calendar, and matures on January 1, 2031. The bond is callable on January 1, 2006 at 110 (that is, $1,100). The bond is now selling at 115.174 (that is, $1,151.74). Determine both the yield to maturity and the yield to call for this bond.

First, calculate the yield to maturity:

Keys:							Display:	Description:
								Displays BOND menu.
							
								Sets semiannual bond
							
								on 30/360 calendar.
		e					 
@c							 	Clears variables; sets
								CALL to 100.
3.162003								Stores today as
							 	purchase date.
1.012031							 	Stores maturity date.
10.5								Stores coupon rate.
								Stores price. Displays
							
115.174								only two decimal
								places, but stores all
								three.
								Calculates yield to
							
								maturity.

14: Additional Examples 215

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