44
Bond Calculations
Using bond calculations
, y
ou can obtain bond pr
ices
, yields to
matur
ity
, and accr
ued interest.
V
ariab
les used in bond calculations
V
ariab
le
Description
Default v
alue
COUPON (PMT)
Ann
ual coupon r
ate (%)
0
REDEMPT (FV)
Redemption v
alue
0
M-D-Y 1
Settlement date (date of bond pur-
chase)
1-1-2001
M-D-Y 2
Redemption date
1-1-2001
CPN/Y (N)
Number of coupons per y
ear
1
YIELD (I/Y)
Y
ield to matur
ity (%)
0
PRICE (PV)
Bond pr
ice
0
A
CCU INT
Accr
ued interest
—
Redemption v
alue of the secur
ity per $100 par v
alue
.
Y
ou can change the date f
o
rmat to D-M-Y (see page 10).
Y
ou can only enter
“1”
or
“2”
—
“1”
f
or ann
ual coupons and
“2”
for semi-ann
ual coupons
.
P
er $100 par v
alue
.
Note:
Bonds are associated with pa
yment methods kno
wn as
coupons
. A coupon is lik
e an
“interest-only pa
yment,
” and
it is based on the future v
alue of the bond.
COUPON is
a percentage of the bond par v
alue
, usually ann
ually
, b
y
the o
wner of the bond.
F
or bonds that ha
v
e
ann
ual coupons
, the o
wner receiv
es
one pa
yment of the coupon amount each y
ear
. Some
bonds ha
v
e
semi-ann
ual coupons
. F
or these
, each y
ear’
s
coupon amount is paid in tw
o equal pa
yments six months
apar
t.
The date on which a coupon pa
yment is made is
called the
“coupon date
.”
The bond matur
ity date is usu-
ally the last coupon date
.
Setting the da
y-count method
Y
ou can toggle betw
een the actual calendar (365 da
ys plus leap
y
ears) and a 360-da
y calendar (12 months of 30 da
ys each)
using
.
&
. The actual calendar is set b
y
def
ault (
360
is
not displa
y
ed).
The calendar r
ange is from J
a
n
uar
y 1, 1901 to
December 31, 2099.
*
2
*
2
*
1
*
2
*
1
*
3
*
4
*
3
*
4
3 Financial FunctionsCurrent.indd 44
06.7.10 8:38:40 PM
