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HP 12C Platinum User Manual Page 224

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224 Section 16: Bonds
7. If price is desired:
a. Key in the desired yield to maturity as a percentage then press ?0.
b. Press t to calculate price as a percentage of par value.
c. RPN: Press ~ to display accrued interest due the seller. Press + to
calculate the total price paid.
c. ALG: Press +~ to display accrued interest due the seller and then
press } to calculate the total price paid.
For a new case return to step 3. Note that only those values which have been
changed need to be reentered and stored.
8. If yield is desired:
a. Press 0?0.
b. Key in the price as a percentage of par value and press ?1.
c. Press t to compute annual yield to maturity.
For a new case return to step 3. Note that only those values which have
been changed need to be reentered and stored.
Example 1: What price should you pay on August 28, 2004 for a 5.5% bond
(computed with a 30/360 basis) that matures on June 1, 2008, if you want a
yield of 4.75% ? What price should you pay for a yield of 4.5% ? This problem
assumes a redemption value of 100.
Keystrokes
Keystrokes
(RPN mode)
(ALG mode)
f]
f[
5.5?2
5.5?2
8.282004?3
8.282004?3
6.012008?4
6.012008?4
100?5
100?5
4.75?0
4.75?0
t
t
~
~
4.5?0
4.5?0
Display
Set compound interest
mode if the C indicator is
not on.
Coupon into R
5.50
Settlement date into
8.28
register R
Maturity date into R
6.01
Redemption value into R
100.00
Yield into R
4.75
Price (calculated).
102.55
Accrued interest
1.33
(calculated).
New yield into R
4.50
.
2
.
3
.
4
.
5
.
0
.
0

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