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188 Appendix D: Formulas Used
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 188 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Bonds
Reference:
Spence, Graudenz, and Lynch, Standard Securities Calculation Methods,
Securities Industry Association, New York, 1973.
DIM = days between issue date and maturity date.
DSM = days between settlement date and maturity date.
DCS = days between beginning of current coupon period and
settlement date.
E = number of days in coupon period where settlement occurs.
DSC = EDCS = days from settlement date to next 6–month coupon
date.
N = number of semiannual coupons payable between settlement
date and maturity date.
CPN = annual coupon rate (as a percentage).
YIELD = annual yield (as a percentage).
PRICE = dollar price per $100 par value.
RDV = redemption value.
For semiannual coupon with 6 months or less to maturity:
×
×+
+
=
2
)
2
(100
)
2
(100
CPN
E
DCS
YIELD
E
DSM
CPN
RDV
PRICE
For semiannual coupon with more than 6 months to maturity:
×
+
+
+
=
=
+
+
E
DCSCPN
YIELD
CPN
YIELD
RDV
PRICE
N
K
E
DSC
K
E
DSC
N
2
200
1
2
200
1
1
1
1
188


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