4: Bond Worksheet
79
Bond Price and Accrued Interest Example
You want to purchase a semiannual corporate bond that
matures on 12/31/97 to settle on 6/12/96. The bond is based on
the 30/360 day-count method with a coupon rate of 7%. It will be
redeemed at 100% of its par value. For an 8% yield to maturity,
compute the bond’s price and the accrued interest.
Example: Entering Bond Data
Procedure
Keystrokes
Display
Set all variables to defaults.
&
}
!
RST
0.00
Select Bond worksheet.
&
l
SDT =
12-31-1990
Enter settlement date.
6.1296
!
SDT =
6-12-1996
Enter coupon rate.
#
7
!
CPN =
7.00
Enter redemption date.
#
12.3197
!
RDT =
12-31-1997
Leave redemption value as is.
#
RV =
100.00
Example: Computing Bond Price and Accrued Interest
(continued from previous example)
Select 30/360 day-count
method.
#
&
V
360
Leave two coupon payments
per year.
#
&
V
2/Y
Enter yield.
#
8
!
YLD =
8.00
Compute price
#
%
PRI =
98.56
View accrued interest.
#
AI =
3.15
For an 8% yield to maturity, the price of the bond is $98.56 per
100 and the accrued interest is $3.15 per 100.
