224 Section 16: Bonds
File name: HP 12cpt_user's guide_English_110608.DOC Page: 284 of 285
Printed Date: {2009/1/13 Dimension: 14.8 cm x 21 cm
7. If price is desired:
a. Key in the desired yield to maturity as a percentage then press ?0.
b. Press t to calculate price as a percentage of par value.
c. RPN: Press ~ to display accrued interest due the seller. Press + to
calculate the total price paid.
c. ALG: Press +~ to display accrued interest due the seller and then
press } to calculate the total price paid.
For a new case return to step 3. Note that only those values which have been
changed need to be reentered and stored.
8. If yield is desired:
a. Press 0?0.
b. Key in the price as a percentage of par value and press ?1.
c. Press t to compute annual yield to maturity.
For a new case return to step 3. Note that only those values which have
been changed need to be reentered and stored.
Example 1:
What price should you pay on August 28, 2004 for a 5.5% bond
(computed with a 30/360 basis) that matures on June 1, 2008, if you want a
yield of 4.75%
?
What price should you pay for a yield of 4.5%
?
This problem
assumes a redemption value of 100.
Keystrokes
(RPN mode)
Keystrokes
(ALG mode)
Display
f]
f[
?Æ
?Æ
Set compound interest
mode if the
C
indicator is
not on.
5.5
?
2 5.5
?
2
5.50
Coupon into R
2
.
8.282004
?
3
8.282004
?
3
8.28
Settlement date into
register R
3
.
6.012008
?
4
6.012008
?
4
6.01
Maturity date into R
4
.
100
?
5 100
?
5
100.00
Redemption value into R
5
.
4.75
?
0 4.75
?
0
4.75
Yield into R
0
.
t
t
102.55
Price (calculated).
~
~
1.33
Accrued interest
(calculated).
4.5
?
0 4.5
?
0
4.50
New yield into R
0
.
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