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"How did this happen?", you ask again. Well, in that Setup List with the preset
variables there is a thing called a VARIANCE which computes what you entered
(1 in this case) and adds the variance to it. Since the variance in this example
was set to 4 basys points, the mark up is computed to 1 and 5 basys points, and
yes, you can change it too. Of course, if your VARIANCE is set to zero then only
the basys entered is shown.
See the section on <SETUP/SPCL FNCT> for more information on setting this
value.
PAGE 7
<CURRENT YIELD/DURATION/CONVEXITY>
Now, with an Issue on the screen, let's compute the Current Yield, Duration and
Convexity. Once again hold onto your hats, because, we compute all these
things to both 1st Call, 2nd Call, and Maturity.
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