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BA II PLUS™ Calculator
Terminology
The following terminology applies to the Bond worksheet.
Call Date
— A bond that can be retired by the issuing agency
before the bond’s maturity date is a callable bond. 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 Value (or face value)
— The value printed on the bond.
Premium Bond
— A bond that sells for an amount greater than
the par value sells at a premium.
Discount Bond
— A bond selling for less than the par value
sells at a discount.
Redemption Date
— The date on which the issuing agency
retires the bond. This date may be the date of maturity or, for a
callable bond, a call date.
Redemption Value
— The amount paid to the owner of the
bond when it is 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 to the investor 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.
