HP -80 Owner's Handbook Manual page 43

Solution
Enter:
See Displayed:
N R
111_
$ _ interest- 360-day basis
x:y]- - - - - - - - - - - - - - - i ... $ _ interest-365-day basis
Discounted Note
This calculation finds the discount amount (interest) and the effective
annual yield on a note for both a 360- and 365-day basis, when the
number of periods
(days only in this application),
discount rate and face
value (future value) are known. The formula uses the constant storage
location, therefore, any value stored there will be destroyed when the
final key (the one that triggers the result) is pressed. The information
is entered as follows:
(j)
Enter the number of days, press.·
®
Enter the annual interest rate, press • .
® Enter the face value (future value) press
III.
IN
o
Press , then
III
to obtain the discount amount on a 360-day
basis.
® Press
@
Press
0 Press
basis.
R+
to obtain the effective annual yield on a 360-day basis.
again to obtain discount amount on a 365-day basis.
again to obtain the effective annual yield on a 365-day
Sample Case: What is the discount amount on a $1000 face value note
having 37 days until maturity at 6 %? What is the effective annual
yield?
Solution
Enter: See Displayed:
INTA
37.6.1000111 . 111---...; ... $_ discount amount,
360-day basis
R+
----------------t.~
_
% effective annual
yield, 360-day basis
R+
---------------I.~
$_ discount amount,
365-day basis
R+
---------------I.~
_ % effective annual
yield , 365-day basis
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