Callable Bonds - Monroe 3180 User Manual

The maturity date in the previous example should have been April 15, 1996, not April 9, 1996.
Recalculate the yield.
ENTER
4.1596
Since the dollar price is already stored, there is no need to re-enter. The DISPLAY key together with the
TO PRICE key will recall the previous dollar price.
ENTER

CALLABLE BONDS

For bonds with a call option, you must enter a call price and call date using the CALL PRICE and CALL
DATE BEGIN keys (in any order).
Press the CALL/MATURITY key, until CALL is displayed, this causes the TRADER II to calculate "to call"
only; maturity date is ignored.
If the CALL/MATURITY key is in the CALL+MAT mode, computing a price or yield calculates both "to
call" and "to maturity", both values are displayed simultaneously, the "to call" on the left, and the "to
maturity" on the right. Only the lower of the two values is retained for further calculations.
EXAMPLE: A 6% Municipal Bond due April 25, 2016 is sold to yield 5.5%. It is callable on April 2,
1996 at a price of 102.50. Settlement date is June 24, 1987. Calculate price to call and to maturity.
ENTER
0
6.2487
The status lien should be set as follows for this example:
12
PRESS RESULTS DISPLAYED
MAT Maturity Date Mon.
DATE
END
PRESS RESULTS DISPLAYED
DISPLAY, Price 96.500
TO
PRICE
TO Yield 9.082% (M)
YIELD
PRESS RESULTS DISPLAYED
CODE Security Code 0.
SETTLEMENT Settlement Date Wed. 06-24-87
DATE
C=0 PER 30/360 SEMI 06-24-87 CALL+MAT
MONROE TRADER II
04-15-1996