The Bond Menu

Before you enter the Bond menu, be sure to verify the date format is set appropriately for your problem. The default setting is mm.ddyyyy, but it can be set for dd.mmyyyy. The range of acceptable dates is October 15, 1582 to December 31, 9999. Bond day counts (360/365) and annual or semiannual coupon payment schedules may be set from either the Mode menu or the Bond menu. For more information on setting the preferences in the Mode Menu, see the section titled, The Mode menu: Setting Preferences in Chapter 1.

To open the Bond menu, press B.

Press <or >repeatedly to scroll through the items shown in Figure 1.

To change the value of the displayed item, key in a number or a date and press I. Once you have entered all known data, Press <or >repeatedly to scroll to an unknown item, and press =to calculate it.

Table 6-1lists the items in the Bond menu.

Table 6-1 Bond Menu Items

Variable

Description

 

 

Settlement Date

Settlement date. Displays the current settlement date. Note: input only.

 

 

Maturity Date

Maturity date or call date. The call date must coincide with a coupon date. Displays the current

 

maturity. Note: input only.

 

 

CPN%

Coupon rate stored as an annual %. Note: input only.

 

 

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.

 

 

Mod. Duration*

Modified duration for the bond. This is a measure of bond price sensitivity to yield changes.

 

 

Macaulay D.*

Macaulay Duration for the bond. This is a measure of bond price sensitivity to yield changes.

 

 

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.

 

 

*Does not apply to the HP 20b.

48 Bonds