Price And Yield To Maturity - Monroe 3180 User Manual

PRICE AND YIELD TO MATURITY

The TRADER II will consider the odd coupon for price, yield and accrued interest calculations whenever
the settlement dat is prior to the 1
st
(0) and press the 1
computed from the issue/dated date but not in the price or yield calculation.
EXAMPLE: A Treasury Bond with an 8.5% coupon, due on March 1, 2001 is sold to yield 8.48% on
May 29, 1987. Find the price to maturity and accrued interest for 100 bonds. The bonds were issued
May 1, 1987 and pays the first coupon on March 1, 1988. (Settlement date occurs before the 1
ENTER
1
2
The status line should be set as follows for this example:
ENTER
5.0187
5.2987
3.0188
8.5
3.0101
8.487
100
0
26
st
coupon date. If the odd coupon is not to be considered, enter a zero
COUPON DATE key. This method allows the correct accrued interest to be
PRESS
CODE
COUPON
PER YEAR
PRESS
ISSUE/
DATED
SETTLEMENT
DATE
st
1 COUPON
DATE
COUPON
MAT
DATE
END
TO
PRICE
EXT
st
1 COUPON
DATE
RESULTS DISPLAYED
Security Code 1.
C=1 PER ACT/ACTG SEMI 06-24-87 MATURITY
RESULTS DISPLAYED
Iss/Dated Fri. 05-01-1987
Settlement Date Fri. 05-29-1987
st
1 Coupon Date Tue. 03-01-1988
Coupon Rate 8.500%
Maturity Date Thu. 03-01-2001
Price 99.999026 (M)
Prin 99,999.03 Int
st
1 Coupon Date
MONROE TRADER II
st
646.74
00-00-0000
coupon.