Yield To Investor; Bond Extensions - Monroe 3180 User Manual

YIELD TO INVESTOR

The CALL/MATURITY mode can also be used to calculate "yield to the investor" for a bond currently
held. To calculate the yield to investor, treat the bond as if it were called. Enter the market price on the
CALL PRICE key, and settlement date on the CALL DATE BEGIN key.
EXAMPLE: A 5.5% agency bond was purchased on July 12, 1971 for 81.75 and is currently selling
for 91.645. What is the investors yield, if the bond is sold on June 24, 1987.
ENTER
0
7.1271
The status line should be set as follows for this example:
ENTER
5.5
6.2487
91.645
81.75

BOND EXTENSIONS

After a price or yeld calculation, securities may be extended, taking into account a concession, if any.
The extension calculates the principal and accrued interest amounts as well as the net amount.
To calcualte bond extension, do a price or yield calculation in the normal way. If there is a concession,
enter it in dollars per hundred par value and press CONC. The price less concession is displayed. With
or without the concession, enter the number of bonds (per thousand) and proceed with one or both of the
following functions:
KEY
EXT
DISPLAY/EXT
14
PRESS RESULTS DISPLAYED
CODE Security Code 0.
SETTLEMENT Settlement Date Mon.
DATE
C=0 PER 30/360 SEMI 07-12-71 CALL
PRESS RESULTS DISPLAYED
COUPON Coupon Rate 5.500%
CALL Call Date Wed.
DATE
BEGIN
CALL Call Price 91.645
PRICE
TO Yield 7.146% (C)
YIELD
FUNCTION
Extended price (less concession, if any) and accrued interest.
Extended net amount (extended price less concession plus accrued interest).
MONROE TRADER II
07-12-71
06-24-87