Average Life; Entry Sequence - Monroe 3180 User Manual

The average life function calculates the average life and maturity date of a sinking fund issue. Average
life calculations may be performed for Code 0 issues only.
Retirements may be annual or semi-annual, or a combination of both; the COUPON PER YEAR key is
set before each group of sinkers is entered. Enter each group of sinkers in consecutive order, starting
with the group with the earliest beginning retirement date. The number retired must always be entered
before pressing the AVG LIFE key, the previous number is not retained (even if it is the same).
The beginning date for the group is entered on the CALLD ATE BEGIN key and the ending date is
entered on the MAT DATE END KEY. The number of bonds for the sinker is then entered on the AVG
LIFE key, completing the retirement for the group.
The dates are updated automatically, depending on the COUPONS PER YEAR key setting, to six or
twelve months after the last ending date. (Assuming that the next group is contiguous and contains only
one sinker.)
If the next group is contiguous but has more than one sinker, you must modify the ending date according
to the number of sinkers with the same number of bonds per sinker.
Of course, if the next group is not contiguous, you must enter both the beginning and the ending dates.
ENTERY SEQUENCE FOR AVERAGE LIFE CA
Start the average life sequence by entering the quantity of bonds outstanding nt he BEGIN, AVG LIFE
key.
FOR EACH GROUP ENTER
Beginning Date
Ending Date
Set the sinker frequently, if necessary
Quantity to be sunk each period
Remember the contiguous beginning date is automatically computed and stored on the CALLD ATE
BEGIN and MAT DATE END keys. Therefore, if the groups are contiguous, the beginning date need not
be entered and if the group has only one sinker, the ending date also does not need to be entered.
Note: The beginning and ending dates may be verified at any time during the entry sequence by
pressing DISPLAY< CALL DATE BEGIN and DISPLAY, MAT DATE END respectively.
Average Life by pressing DISPLAY, AVG LIFE and the average life in decimal years' displays. This also
calculates the date of the average life and stores it on the MAT DATE END key. DISPLAY, MAT DATE
END displays the date of average life which is stored.
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AVERAGE LIFE

KEY PRESSED
CALL DATE BEGIN
MAT DATE END
COUPONS PER YEAR
AVG LIFE
MONROE TRADER II
Compute