228 Section 16: Bonds
For annual coupon bonds calculated on a 30/360 day basis, insert d after
gÒ at steps 19 and 23 in the RPN mode program and after gÒ at steps
20 and 24 in the ALG mode (making each program two steps longer).
1. Key in the program and press ?É if the C status indicator is not
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.
5. Key in the redemption value then press ?3.
6. Key in the settlement (purchase) date
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, 2004 to yield 7%. The next
coupon is received on December 1, 2004.
Positive for cash received; negative for cash paid out.
For information about date format see page 37.
: # Periods (n)
PMT: Cpn. or 0
: Next Cpn.
then press ?4.
Set compound interest
mode if the C indicator is
Total number of coupons.
Annual coupon rate.
: Last Coupon