After-Tax Yield To Price - Monroe 3180 User Manual

Set the FED/MUNI switch and status line as follows:
ENTER
7
1.0592
33.28
92.625
Find the municipal equivalent after-tax yield for the bond above.
ENTER
0.28

AFTER-TAX YIELD TO PRICE

To find the price which must be paid to obtain a desired after-tax yield (calculate the before-tax price), use
the DISPLAY, AFTER-TAX keys. Price or yield does not have to be computed prior to calculating the
before-tax price, unless in the CALL+MATURITY mode; in this case, the price or yield must be done first
to determine whether the calculation is to call or to maturity. DISPLAY, AFTER-TAX always uses the
values currently stored for a security and assumes the after-tax yield is entered in the display or is the last
value displayed.
EXAMPLE: What price would you have to pay for the previous bond if you required an after-tax yield
of 7.5%?
ENTER
33.28
7.5
18
C=0 PER 30/360 SEMI 06-24-87 MATURITY
PRESS RESULTS DISPLAYED
COUPON Coupon Rate 7.000%
MAT Maturity Date Sun.
DATE
END
TAX Inc Tax 33% Cap Gains 28%
RATE
TO Yield 9.018% (M)
YIELD
AFTER After-Tax Yield 6.179%
TAX
PRESS RESULTS DISPLAYED
TAX Inc Tax 0% Cap Gains 28%
RATE
AFTER After-Tax Yield 8.617%
TAX
PRESS RESULTS DISPLAYED
TAX Inc Tax 33% Cap Gain 28%
RATE
DISPLAY B-Tax Price 86.703
AFTER
TAX
MONROE TRADER II
01-05-1992