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56 Bond Worksheet
Bond Worksheet Terminology
Entering Bond Data and Computing Results
To compute values for price (PRI), modified duration (DUR), or yield
(
YLD) and accrued interest (AI), first enter the four known values for
settlement date (SDT), coupon rate (CPN), redemption date (RDT), and
Term Definition
Call Date A callable bond can be retired by the issuing agency
before the maturity date. The call date for such a
bond is printed in the bond contract.
Coupon
Payment
The periodic payment made to the owner of the
bond as interest.
Coupon Rate The annual interest rate printed on the bond.
Dollar Price Price of the security expressed in terms of dollars per
$100 of par value.
Par (Face) Value The value printed on the bond.
Premium Bond A bond that sells for an amount greater than the par
value.
Discount Bond A bond selling for less than the par value.
Redemption
Date
The date on which the issuing agency retires the
bond. This date can be the date of maturity or, for a
callable bond, the call date.
Redemption
Value
The amount paid to the owner of a bond when
retired. If the bond is redeemed at the maturity
date, the redemption value is the par value printed
on the bond. If the bond is redeemed at a call date,
the redemption value is the bond’s par value plus
any call premium. The calculator treats the
redemption value in terms of dollars per $100 of par
value.
Settlement Date The date on which a bond is exchanged for funds.
Yield to
Maturity
The rate of return earned from payments of
principal and interest, with interest compounded
semiannually at the stated yield rate. The yield to
maturity takes into account the amount of premium
or discount, if any, and the time value of the
investment.