Bonds

Table 5-1Bond Menu Items

 

 

 

Variable

Description

 

 

Call

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. Note: input only.

 

 

Yield%

Yield% to maturity or yield% to call date for given price. Note: input/output.

 

 

Price

Price per 100.00 face value for a given yield. Note: input/output.

 

 

Accrued

Interest accrued from the last coupon or payment date until the settlement date for

 

a given yield. Note: this item is Read-only.

 

 

Actual/Cal.360

Actual (365-day calendar) or Cal.360 (30-day month/360-day year calendar).

 

Press Ito toggle between these options.

 

 

Annual/Semiannual

Bond coupon (payment) frequency. Press Ito toggle between these

 

options.

 

 

Bond Calculation Example

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. See Table 5- 2. The example below is shown with RPN as the active operating mode.

Table 5-2Bond Calculation Example

Key

Display

Description

B

Opens the Bond menu.

>

 

Scrolls to bond coupon (payment) frequency.

 

 

 

 

 

 

I

Selects semiannual coupon payment, as required by the example.

<4.28

2010 I

Inputs April 28, 2010 for the settlement date (mm.ddyyyy format).

<6.04

2020 I

Inputs June 4, 2020 for the maturity date.

<6.75

I

Inputs 6.75% for the value for CPN%.

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