HP 10bII+ - Page 115

Bonds
107
Example 2
A bond has a call provision at 104 and a coupon rate of 5.5%. If the bond matures on
October 15, 2020 and is presently selling at 101, what is the yield-to-call on April 15, 2012?
Assume the bond is calculated on a semiannual coupon payment on an actual/actual basis.
S7:YG:G:
]°
6-4-2020 4 Inputs June 4, 2020 for the maturity date.
S7jV]Î
6.75 Inputs 6.75% for the value for CPN%.
J::]Ë
100.00 Inputs call value. Optional, as default is
100. Note: if Call requires another value,
key in the number followed by
]Ë.
Y7jV]Ô
4.75 Inputs 4.75% for Yield%.
]Ñ
115.89 Calculates the price.
1]Û
2.69 Displays the current value for accrued
interest.
4
118.58 Returns the result for total price (value of
price + value of accrued interest). The
net price you should pay for the bond is
118 . 5 8 .
Table 10-2 Bond calculation example
Keys Display Description
Table 10-3
Keys Display Description
]Oj
BOND CLR
(message flashes, then
disappears)
Clears bond memory.
V7V]Î
5.50
Inputs coupon rate as an annual%.
J:Y]Ë
104.00
Inputs call value.
J:J]Ñ
101.00
Inputs price.