Bond Calculation Example - HP 30b - Business Professional Calculator User Manual

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
B
>
I
<4.2
82010
I
<6.0
42020
I
<6.7
5I
<
<4.7
5I
<=
Display Description
Opens the Bond menu.
Scrolls to bond coupon (payment)
frequency.
Selects semiannual coupon payment,
as required by the example.
Inputs April 28, 2010 for the
settlement date (mm.ddyyyy format).
Inputs June 4, 2020 for the maturity
date.
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
.
Inputs 4.75% for Yield%.
Calculates the current value for Price.
Bonds
49