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Bonds
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Bond Calculation Example
What price should you pay on April 28, 2010 for a 6.75% U.S. Treasury bond maturing on June 4,
2020, if you want a yield of 4.75%? Assume the bond is calculated on a semiannual coupon payment
on an actual/actual basis. See Table 6-2. The example below is calculated with RPN as the active
operating mode.
Table 6-2 Bond Calculation Example
Key Display Description
B
Opens the Bond menu.
>
Scrolls to bond coupon (payment)
frequency.
I
Selects semiannual coupon payment,
as required by the example.
<4.2
82010
I
Inputs April 28, 2010 for the
settlement date (mm.ddyyyy format).
<6.0
42020
I
Inputs June 4, 2020 for the maturity
date.
<6.7
5I
Inputs 6.75% for the value for CPN%.
<
Displays current call value. Default is
100. Note: if Call requires another
value, key in the number followed by
I.
<4.7
5I
Inputs 4.75% for Yield%.
<=
Calculates the current value for Price.
57


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