Security Code 5; Discount Extensions - Monroe 3180 User Manual

Security Code 5 is used to calculate Treasury Bills and other discount instruments, such as banker's
acceptances, on an Actual/360 calendar. Refer to Appendix B for a more complete list of securities and
the day count basis. Given the price, the discount rate is calculated. The bond equivalent yield is also
available (DISPLAY, TO YIELD). In addition, the price and the total discount can be extended.
ESAMPLE: A Treasury Bill is sold on June 24, 1987 at a 7.8% discount. It matures on March 1, 1988.
Calculate the price and effective yield.
ENTER
5
6.2487
The status line should be set as follows for this example:
ENTER
3.0188
7.8

DISCOUNT EXTENSIONS

For discounted securities, EXT calculates the extended amounts of principal and discount interest;
DISPLAY, EXT displays the extended par amount
ENTER
250
After the price or discount rate calculation, the entered or calculated discount is not stored; DISPLAY, TO
YIELD recalls the effective yield.
30

SECURITY CODE 5

PRESS RESULTS DISPLAYED
CODE Security Code 5.
SETTLEMENT Settlement Date Wed. 06-24-1987
DATE
C=5 DISC ACT/360 SEMI 06-24-87 MATURITY
PRESS RESULTS DISPLAYED
MAT Maturity Date Tue.
DATE
END
TO Price 94.5616667 (M)
PRICE
PRESS RESULTS DISPLAYED
EXT Prin
DISPLAY Net Amount 250,000.00
EXT
MONROE TRADER II
03-01-1988
236,404.17 Int 13,595.83