The following example assumes that you have entered the NOTE equations into the Solver. For instructions on entering Solver equations, see “Solving Your Own Equations,” on page 30.

Example:Price and Yield of a Discounted Note. What are the price and yield of the following U.S. Treasury Bill: settlement date October 14, 2003; maturity date March 17, 2004; discount rate 8.7%? (Assume month/day/year format.)

Select the NOTE:PRICE equation in the Solver.

Keys:Display:Description:

 

Creates menu.

10.142003

Stores known values.



3.172004 



8.7 

100

 



 



 

 

 

 

 

 

 

Calculates price.

 

 

 

 

 



 

 

 

Displays NOTE:YIELD

e]



 

 

 

 

 

 

 



equation, then its menu.

 

 

 

 

 

 

 



Calculates yield.

 



 

 

 

Statistics

Moving Average

Moving averages are often useful in predicting trends in data taken over a period of time. In moving-average calculations, a specified number of points is averaged. Each time a new point is acquired, the oldest point is discarded. Thus, the same number of points is used in each calculation.

14: Additional Examples 217

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