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216 14: Additional Examples
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
Second, calculate the yield to call:
Keys: Display: Description:
Returns to first BOND
menu.
1.012006
Changes maturity date
to the call date.
110 Stores call value.
Calculates a yield to
call.
Discounted Notes
A note is a written agreement to pay to the buyer of the note a sum of
money plus interest. Notes do not have periodic coupons, since all
interest is paid at maturity. A discounted note is a note that is purchased
below its face value. The following equations find the price or yield of a
discounted note. The calendar basis is actual/360.
Solver Equations for Discounted Notes: To find the price given the
discount rate:
To find the yield given the price (or to find the price given the yield):
PRICE = the purchase price per $100 face value.
YIELD = the yield as an annual percentage.
RV = the redemption value per $100.
DISC = the discount rate as a percent.
SETT = the settlement date (in current date format).
MAT = the maturity date (in current date format).