8:
Bonds
111
maturity, the
CALL
value must equal 100. (See step 3.)
8.
To calculate a result, first press
)
to access the remaining menu
labels. Do either
a
or
b
:
a.
Key in the yield and press
•
. Press
*
to calculate the
price.
b.
Key in the price and press
*
. Press
•
to calculate the
yield.
To calculate the accrued interest, press
€
. The
total
amount owed
the seller is
PRICE
+
ACCRU
, that is:
*
+
€
=
.
Calculating Fractional Values.
When given a fractional value that must
be entered in decimal form, do the arithmetic and then store the result
directly
into a variable. Do not clear the arithmetic and then retype the
result before storing it
―
this is an unnecessary step that can cause
incorrect answers due to rounding. See how the following example
stores 8
3
/
8
in
YLD%
.
Example: Price and Yield of a Bond.
What price should you pay on
August 10, 2003 for a 6¾% U.S. Treasury bond that matures on May 1,
2018 if you wish a yield of 8
3
/
8
%
?
The calendar basis is actual/actual
and the coupon payments are semi-annual. (The example assumes
MM.DDYYYY
date format.)
Keys: Display:
Description:
"
y
@c
"
Since there is no call on
this bond, set
CALL
= 100
by clearing variables.
z
‚
ƒ
e
"
1?1
FH0;1<<419"
Sets bond type, if
necessary.
8.102003
{
"
FH::8"
(*?#(?$((%
F4<"
Stores settlement
(purchase) date.
5.012018
"
Stores maturity date.
v
