» HP Calculator Tutorial » hp 12c (platinum) - Example : Bond Calculations 

The HP-12C enables you to solve for bond price (and the interest accrued since the last interest date) and the yield to maturity.  The PRICE and YTM calculations are done assuming a semiannual coupon payment and using an actual/actual basis (such as for U.S Treasury bonds and U.S. Treasury notes).  In accordance with market convention, prices are based on a redemption (par) value of 100.

Calculating Bond Price

To calculate bond price:  Enter the desired yield to maturity (as a percentage), using i.  Enter the annual coupon rate (as a percentage), using PMT.  Key in the settlement (purchase) date (as described in Keyboard Functions for D.MY or M.DY), then press ENTER.  Key in the maturity (redemption) date.  Press f PRICE.

The price is shown in the display and also is stored in the PV register.  The interest accrued since the last interest date is held inside the calculator:  to display the interest, press x>

Calculating Bond Yield

To calculate the yield to maturity:  Enter the quoted price (as a percent of par), using PV.
Enter the annual coupon rate (as a percentage), using PMT.  Key in the settlement (purchase) date, then press ENTER.  Key in the maturity (redemption) date.  Press f YTM.

The yield to maturity is shown in the display and also stored in the i register.

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Updated On: 15.07.14


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