Section 4: Additional Financial Functions
83
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
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
$
122.13
Enters quoted price.
6.75
P
6.75
Enters coupon rate.
4.282004
\
4.28
Enters settlement (purchase) date.
6.042018
6.042018
Enters maturity (redemption) date.
fS
4.60
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.