HP 12C User Manual page 220

220 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
(RPN mode)
f]
?Æ
5.5?2
8.282004?3
6.012008?4
100?5
4.75?0
t
~
4.5?0
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
Keystrokes
Display
(ALG mode)
f[
?Æ
5.50
5.5?2
8.28
8.282004?3
6.01
6.012008?4
100.00
100?5
4.75
4.75?0
t
102.55
~
1.33
4.50
4.5?0
Page: 220 of 275
Dimension: 14.8 cm x 21 cm
Set compound interest
mode if the C indicator is
not on.
Coupon into R .
2
Settlement date into
register R .
3
Maturity date into R .
4
Redemption value into R .
5
Yield into R .
0
Price (calculated).
Accrued interest
(calculated).
New yield into R .
0