Bond Calculations - HP 0012C-90001 User Manual

66 66 Section 4: Additional Financial Functions Section 4: Additional Financial Functions
66 66 Section 4: Section 4: Additional Financial Functions Additional Financial Functions
Note: Note: Note: Note: If you change the number in the n register in order to change an
be sure to reset the number in the n register to the total number of cash flow
amounts originally entered (not including the amount of the initial investment
CF
). If this is not done,
0
Example 1: With the cash flows now stored in the calculator, change Example 1:
Example 1: Example 1:
$11,000 to $9,000, then calculate the new
Keystrokes Keystrokes
Keystrokes Keystrokes
9000?2
13.5¼
fl
NPV
Since this is negative, the investment would decrease the financial value of
the investor's assets.
N
Example 2: Example 2: Change Example 2: Example 2:
Keystrokes Keystrokes
Keystrokes Keystrokes
5w
4ga
7w
fl

Bond Calculations

Bond Calculations
Bond Calculations Bond Calculations
The hp 12c enables you to solve for bond price (and the interest accrued since the
last interest date) and the yield to maturity.
done assuming a semiannual coupon payment and using an actual/actual basis
(such as for U.S. Treasury bonds and U.S. Treasury notes). In accordance with
market convention, prices are based on a redemption (par) value of 100.
*
This step is necessary in this example because we have calculated
calculated NPV . The IRR
NPV IRR
with the result for
†
All bond calculations are performed in accordance with. the Securities Industry Association's
recommendations as contained in Spence, Graudenz, and Lynch,
Calculation Methods,
Securities Industry Association, New York, 1973.
NPV IRR
and calculations will give incorrect results.
Display Display
Display Display
9,000.00
13.50
–644.75
from 2 to 4, then calculate the new
5
Display Display
Display Display
5.00
4.00
7.00
–1,857.21
calculation replaced the 13.5 we keyed into i before calculating
– 13.72.
NPV 1
for a 13 / % return.
2
CF
Stores the new in R
2
i
Stores .
*
NPV.
The new
NPV
.
Stores j in the n n n n register.
N .
Stores the new
5
Resets the number in the n n n n register to
its original value.
The new NPV.
The E and S calculations are
†
IRR
since the first time we
Standard Securities
N
,
j
CF
from
2
.
2