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Section 16: Bonds 163
For annual coupon bonds calculated on a 30/360 day basis, insert d after
at steps 19 and 23 (making the program two steps longer).
1. Key in the program and press if the C status indicator is not
displayed.
2. Key in the total number of coupons which are received and press ?0.
3. Key in the annual yield as a percentage then press ?1.
4. Key in the amount of the annual coupon then press ?2.
15
5. Key in the redemption value then press ?3.
15
6. Key in the settlement (purchase) date
16
then press ?4.
7. Key in the date† of the next coupon then press ?5.
8. Press t to obtain the amount of accrued interest.
9. Press t to determine the price of the bond.
10. For a new case, return to step 2.
Example: What is the price and accrued interest of a 20-year Eurobond with
annual coupons of 6.5% purchased on August 15, 2003 to yield 7%. The next
coupon is received on December 1, 2003.
15.
Positive for cash received; negative for cash paid out.
16.
For information about date format see pages 30 to 31.
Keystrokes (RPN mode)
Display
Set compound interest mode if the
C indicator is not on.
20?0
20.00
Total number of coupons.
7?1
7.00
Annual yield.
6.5?2
6.50
Annual coupon rate.
100?3
100.00
Redemption value.
8.152003?4
8.15
Settlement date.
12.012003?5
12.01
Next coupon date.
t
–4.58
Accrued interest.
t
–94.75
Purchase price.
163


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