Sharp EL-738 Bond Calculations, Variables used in bond calculations, Setting the day-count method

Bond Calculations

Using bond calculations, you can obtain bond prices, yields to maturity, and accrued interest.

Variables used in bond calculations

Variable	Description	Default value
COUPON (PMT)	Annual coupon rate (%)	0
REDEMPT (FV)	Redemption value *1	0
M-D-Y 1*2	Settlement date (date of bond pur-	1-1-2001
	chase)
M-D-Y 2 *2	Redemption date	1-1-2001
CPN/Y (N)*3	Number of coupons per year	1
YIELD (I/Y)	Yield to maturity (%)	0
PRICE (PV)	Bond price *4	0
ACCU INT	Accrued interest	—

*1 Redemption value of the security per $100 par value.

*2 You can change the date format to D-M-Y (see page 10).

*3 You can only enter “1” or “2” — “1” for annual coupons and “2” for semi-annual coupons.

*4 Per $100 par value.

Note: Bonds are associated with payment methods known as coupons. A coupon is like an “interest-only payment,” and it is based on the future value of the bond. COUPON is a percentage of the bond par value, usually annually, by the owner of the bond.

For bonds that have annual coupons, the owner receives one payment of the coupon amount each year. Some bonds have semi-annual coupons. For these, each year’s coupon amount is paid in two equal payments six months apart. The date on which a coupon payment is made is called the “coupon date.” The bond maturity date is usu- ally the last coupon date.

Setting the day-count method

You can toggle between the actual calendar (365 days plus leap years) and a 360-day calendar (12 months of 30 days each) using .&. The actual calendar is set by default (360 is not displayed). The calendar range is from January 1, 1901 to December 31, 2099.

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