Bonds - HP 12C Platinum Owner's Handbook Manual

188 Appendix : Formulas Used
for f(DT )
1
if dd = 31 then z = 30
1
≠ 31 then z = dd
if dd
1
for f(DT )
2
if dd = 31 and dd
2
if dd = 31 and dd
2
if dd < 31 then z = dd
2

Bonds

Reference:
Spence, Graudenz, and Lynch, Standard Securities Calculation Methods, Securi-
ties 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 = E – DCS = 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:

100 RDV

PRICE =
----------------------------------------------------------
DSM

100 + ------------ -

E
For semiannual coupon with more than 6 months to maturity:
1
= 30 or 31 then z = 30
1
< 30 then z = dd
1 2
2
CPN

+ ----------- -

2
DCS CPN
×
– ----------- - ----------- -
E 2
YIELD

×
----------------- -

2