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VICTOR TECHNOLOGY
28
Determining Bond Values
To calculate bond price and the interest accrued since its last interest date, as
well as its yield to maturity, use b PRICE and .b YTM functions.
Use these methods to calculate bond price and yield for 30/360 day bonds
(municipal bonds, corporate bonds, and bonds with annual coupon payments.
To Calculate Standard Bond Price (.b PRICE )
¾ Enter coupon rate; touch PMT
¾ Enter desired yield to maturity; touch i.
¾ Enter purchase date (settlement date); touch ENTER
¾ Enter redemption date; touch b PRICE
The price displayed is the Bond Price as a percent of Part. This number is now
stored to the PV register. The interest accrued since last interest date is also
stored, to show this touch x ↔ y
To add the interest to the Bond Price in RPN method, touch + ; in ALG method,
touch + x ↔ y =.
Example
What Bond Price should you pay on September 17, 2009 for a 4.9% US
Treasury Bond that matures on November 2, 2017 if you desire a yield of
6.65%?
ENTRIES DISPLAY
.b REG
0.00
Clears the registers
4.9 PMT
4.9
Enters coupon rate
6.65 i.
6.65
Enters yield to maturity
.r M.DY
6.65
Sets date format to month-day-year value