HP 113394 User Guide - Page 83

Section 4: Additional Financial Functions 83 In ALG mode, perform the steps listed for RPN mode above but replace the last step with the step below. Keystrokes (ALG mode) Display +~} 123.07 Total price, including accrued interest. Bond Yield 1. Enter the quoted price (as a percent of par), using $. 2. Enter the annual coupon rate (as a percentage), using P. 3. Key in the settlement (purchase) date, then press \. 4. Key in the maturity (redemption) date. 5. Press fS. The yield to maturity is shown in the display and also is stored in the i register. Note: Remember that the fS function may take a significant amount of time to produce an answer, during which the calculator displays running. Example: The market is quoting 122.125% for the bond described in the preceding example. What yield will that provide? Keystrokes Display 122.125$ 6.75P 4.282004\ 6.042018 fS 122.13 6.75 4.28 6.042018 4.60 Enters quoted price. Enters coupon rate. Enters settlement (purchase) date. Enters maturity (redemption) date. Bond yield. After solving a bond problem, the FV register contains the redemption value plus the annual coupon rate percentage divided by two, and the n register contains the days from settlement date to the next coupon date divided by the number of days in the coupon period in which settlement occurs. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 83 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm