Unformatted text preview: t–not the dollar amount of the coupon payment. Chapter 4: Using the Bond Worksheet 37 Enter a date for RDT (redemption date) in the date format you selected
(U.S. or European). The calculator assumes that the redemption date (RDT)
coincides with a coupon date.
For “to maturity” calculations, enter the maturity date for RDT.
For “to call” calculations, enter the call date for RDT.
The redemption value (RV) is a percentage of the bond’s par value.
For “to maturity” analysis, enter 100 for RV.
For “to call” analysis, enter the call price for RV.
When either ACT or 360 is displayed, you can set the day-count method by
repeatedly to select either ACT (actual/actual) or 360
When either 1/Y or 2/Y is displayed, you can set the coupon frequency by
repeatedly to select either 2/Y (two coupon payments per
year) or 1/Y (one coupon payment per year).
To compute a value for YLD, enter a value for PRI.
To compute a value for PRI, enter a value for YLD.
A value for AI is computed automatically in terms of dollars per $100 of par
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
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/Discount – A bond that sells for an amount greater than the par
value sells at a premium. A bond selling for less than the par value sells at a
discount. 38 Chapter 4: Using the Bond Worksheet 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
Redemption Value – The amount p...
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- Summer '09