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86 APPENDIX - Reference Information
( )
PRI
= ×
RV
A
E
R
M
+
1+ ×
100×
R
M
DSR
E
Y
M
100×
where: PRI = dollar price per $100 par value
RV = redemption value of the security per $100 par value
(RV except in those cases where call or put features must
be considered)
R = annual interest rate (as a decimal; CPN_100)
M = number of coupon periods per year standard for the
particular security involved (set to 1 or 2 Bond worksheet)
DSR = number of days from settlement date to
redemption date (maturity date, call date, put date, etc.)
E = number of days in coupon period in which the
settlement date falls
Y = annual yield (as a decimal) on investment with
security held to redemption (YLD
÷
100)
A = number of days from beginning of coupon period to
settlement date (accrued days)
Note: The first term computes present value of the redemption amount,
including interest, based on the yield for the invested period. The second term
computes the accrued interest agreed to be paid to the seller.
Yield (given price) with one coupon period or less to redemption:
( )
( )
Y
= ×
M E
DSR
+ + ×
+ ×
×
RV R
M
PRI A
E
R
M
PRI A
E
R
M
100 100
100
Price (given yield) with more than one coupon period to redemption:
92


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