Zero-Coupon Bonds - Monroe 3180 User Manual

ZERO-COUPON BONDS

Zero Coupon or stripped coupon bonds can be calculated exactly as a normal coupon bond by entering a
coupon interest rate of 0%.
EXAMPLE: Find the yield of a Zero Coupon Bond that matures on January 01, 1999 at a price of
24.90 on June 24, 1987.
ENTER
0
6.2487
Set the FED/MUNI switch and status line as follows:
FED/MUNI SWITCH to MUNI
ENTER
0
1.0199
24.9
The same bond is callable on January 01, 1995 at a price of 65.811. To find the yield to call:
ENTER
1.0195
65.811
20
PRESS RESULTS DISPLAYED
CODE Security Code 0.
SETTLEMENT Settlement Date Wed. 06-24-1987
DATE
C=0 PER 30/360 SEMI 06-24-87 MATURITY
PRESS RESULTS DISPLAYED
COUPON Coupon Rate 0.000%
MAT Maturity Date Fri.
DATE
END
TO Yield 12.44% (M)
YIELD
PRESS RESULTS DISPLAYED
CALL/MAT
CALL Call Date Sun.
DATE
BEGIN
CALL Call Price 65.811
PRICE
DISPLAY Price 24.900
TO
PRICE
TO Yield 13.352% ©
YIELD
01-01-1999
C=0 PER 30/360 SEMI 06-24-87
01-01-1995
MONROE TRADER II
CALL