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Equation:
Example:
Bonds
B¥(if(CalendarType=0,1¢(CalendarType,2)
18)+1Ce,.01%(fp(188%Sett lementDatel+ip
ClegxMaturitybDatel) )+1(z,saniddaus(gle
JiSettlementDate 1X) )+if(glzi)=0,1C(=z,1)
WB)+1CF,1Ff(1<Ct yabs(CalendarType?>»=1,9¢
e)+.800881xg9(z) ,gle)—-glZz)*(6— . 000881 >>
JHifCal(fI>=13,1(f,q(f)-12+.000001) ,if
g(fr<1,1(f,g(Ff)+12-.8886801),8)>+if(glz
228,1Cd ged d+1Ce,g(Ffrr,1(dsgl(fI22+1(p
sif(CalendarType<d,ddays(Sett lementDat
e,9(d),3)/368%¥CalendarType ,ddays{g(d),
SettlementDate, ll) ddays{(g{d) ged ,s123)
+1Cn,188068*%(fpliBB*MaturituDate)-fp(iB
B¥g(di»»¥g(t)-if(g(zr<B and g(t>)=2,1,0
M)+1Ca,glpr*¥Coupongt 2 )+if(CallPrice
=@A,1(CallPrice,1808>,8)+1(i sCoupon#-g(t
¥(1-CapGainTaxRate®-1088) >+B*Taxable*C
apGain+Commission+1l(y,Yield%x-1868-g9(t >
J+1<¢c,CallPrice+Taxable*CapGain~1688%Ca
pGainTaxRatex/ 188% (CurrentPrice-CallPr
ice+Commission%~1688> >) )+if{(s(AccruedInt
erest ) AccruedInterest—gla',if(gini><2,
Calcr+glid 2 (1+C1l—-g(pll*¥g(ylrd ,glcr (1+
g{yr2™Cg{n)—g(pr)+sigmack s1 gin? ,1,9(i1
2/C1+g(yd 2 Ck—glpl 22 )—glpl*g(i)-Curren
tPrice¥(l1+Commission%-188)+B*Yield)
With all capital gains taxable at a tax bracket of33%, for a 10% after-
tax yield-to-maturity, what price (and accrued interest) can you pay on
7/28/90 for a 7% bond (semiannual coupons, 30/360 basis) maturing on
9/9/99? The commission is 0.15% What's your yield-to-call if the bond
is callable at 88.125 on 3/9/95?
Highlight Bonds in the Solve catalog and press
(HEM= ) .
Type: 2+/-), BEYER, 7.281990 EEX 9.691999 IEMs,
7 E=INTE, 160 IEEE, 33 EEE, 15 MET, 16 GHEE
Press: MNS...
Result:
CurrentPrice=65.72
Press: [A[==al...
Result:
AccruedInterest=2.70
Type: 88.125 20153.091995 IELTS.
Press: EEE...
Result:
Yield%=11.82
Using the Solver
59
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