Sharp EL-738 Operation Manual page 47

Calculating bond price and accrued interest
A $100, 20-year, 6.5% coupon bond is issued to mature on
August 15, 2023. It was sold on November 3, 2006 to yield the
purchaser 7.2% compounded semiannually until maturity. At
what price did the bond sell? Also calculate the accrued coupon
interest.
Procedure
Bring up the initial dis-
play in NORMAL mode.
Select bond calcula-
tions.
Make sure the actual calendar is set (360 is not displayed).
Enter the coupon rate
(%).
Enter the redemption
value.
Enter the settlement
date.
Enter the redemption
date.
Enter the number of
coupon payments per
year.
Enter the annual yield
(%).
Calculate bond price.
Calculate the accrued
interest.
Calculate bond price
including accrued
interest.
Answer: The bond sold at $93.23 and the accrued coupon
interest was $1.41 (the bond price including accrued
interest would be $94.64).
The asking price on the above bond is $92.50. What will your
yield be?
Key operation
s
#
6.5 Q
i 100 Q
i 11032006 Q
i 08152023 Q
i 2 Q
i 7.2 Q
i @
i
s i v +
i / =
Display
000
COUPON(PMT)=
000
COUPON(PMT)=
650
REDEMPT(FV)=
10000
M-D-Y 1=[FR]
11- 3-2006
M-D-Y 2=[TU]
8-15-2023
CPN/Y(N)=
200
YIELD(I/Y)=
720
PRICE(PV)=
9323
ACCU INT=
141
PV+ANS=
9464
46