44
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
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 year
1
YIELD (I/Y)
Yield to maturity (%)
0
PRICE (PV)
Bond price
0
ACCU INT
Accrued interest
—
Redemption value of the security per $100 par value.
You can change the date format to D-M-Y (see page 10).
You can only enter “1” or “2” — “1” for annual coupons and “2”
for semi-annual coupons.
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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