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6.75
v
3
/
8
+
8
+
v
=
v
Suppose that the market quote for the bond is 88¼. What yield does it
represent?
88.25
Example: A Bond with a Call Feature. What is the price of a 6%
corporate bond maturing on March 3, 2022 and purchased on May 2,
2003 to yield 5.7%? It is callable on March 3, 2006 (a coupon date),
at a value of 102.75. What is the yield to the call date? Use a 30/360
calendar with semi-annual coupon payments.
Keys:
@c
e
*
To see the full precision of the number, press
112 8: Bonds
File name : English-M02-1-040308(Print).doc
Display:
Print data : 2004/3/9
Stores annual coupon
rate.
Stores desired yield
(displayed rounded to two
*
decimal places).
Result: price is $86.38
per $100 face value.
Adds accrued interest
owed the seller.
Net price.
Stores quoted price.
Result: yield to maturity.
Description:
Displays BOND menu,
clears variables.
Sets bond type, if
necessary.
@S
.
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