Equation:
Example:
Bonds
B¥(if(CalendarType=0,1¢(CalendarType,2)
18)+1Ce,.01%(fp(188%Sett
lementDatel+ip
ClegxMaturitybDatel)
)+1(z,saniddaus(gle
JiSettlementDate
1X)
)+if(glzi)=0,1C(=z,1)
WB)+1CF,1Ff(1<Ct
yabs(CalendarType?>»=1,9¢
e)+.800881xg9(z)
,gle)—-glZz)*(6—
.
000881
>>
JHifCal(fI>=13,1(f,q(f)-12+.000001)
,if
g(fr<1,1(f,g(Ff)+12-.8886801),8)>+if(glz
228,1Cd
ged
d+1Ce,g(Ffrr,1(dsgl(fI22+1(p
sif(CalendarType<d,ddays(Sett
lementDat
e,9(d),3)/368%¥CalendarType
,ddays{g(d),
SettlementDate,
ll)
ddays{(g{d)
ged
,s123)
+1Cn,188068*%(fpliBB*MaturituDate)-fp(iB
B¥g(di»»¥g(t)-if(g(zr<B
and
g(t>)=2,1,0
M)+1Ca,glpr*¥Coupon
gt
2
)+if(CallPrice
=@A,1(CallPrice,1808>,8)+1(i
sCoupon#-
g(t
¥(1-CapGainTaxRate®-1088)
>+B*Taxable*C
apGain+Commission+1l(y,Yield%x-1868-g9(t
>
J+1<¢c,CallPrice+Taxable*CapGain~1688%Ca
pGainTaxRatex/
188%
(CurrentPrice-CallPr
ice+Commission%~1688>
>)
)+if{(s(AccruedInt
erest
)
AccruedInterest—gla’,if(gini><2,
Calcr+glid
2
(1+C1l—-g(pll*¥g(ylrd
,glcr
(1+
g{yr2™Cg{n)—g(pr)+sigmack
s1
gin?
,1,9(i1
2/C1+g(yd
2
Ck—glpl
22
)—glpl*g(i)-Curren
tPrice¥(l1+Commission%-188)+B*Yield)
With
all
capital
gains
taxable
at
a
tax
bracket
of
33%,
for
a
10%
after-
tax
yield-to-maturity,
what
price
(and
accrued
interest)
can
you
pay
on
7/28/90
for
a
7%
bond
(semiannual
coupons,
30/360
basis)
maturing
on
9/9/99?
The
commission
is
0.15%
What's your
yield-to-call
if
the
bond
is
callable
at
88.125
on
3/9/95?
Highlight
Bonds
in
the
Solve
catalog
and
press
(HEM
=).
Type:
2+/-),
BEYER,
7.281990
EEX
9.691999
IEMs,
7
E=INTE,
160
IEEE,
33
EEE,
15
MET,
16
GHEE
Press:
MNS...
Result:
CurrentPrice=65.72
Press:
[A[==al...
Result:
AccruedInterest=2.70
Type:
88.125
2015
3.091995
IELTS.
Press:
EEE...
Result:
Yield%=11.82
Using
the
Solver
59
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