Calendar Mode = 0
Payment Basis = 2
Settlement Date = 0/0/0
Maturity Date = 0/0/0
Coupon Rate =
Redemption Value =
Accrued Interest =
Par Value = 1
Price [Par] =
Calculates corporate and municipal bond investments based on $100, $1,000 or $10,000 par values. Computations include yield, price and accrued interest.
- Date Basis: Computations based on Actual or 30/360 day-count method.
- Payment Basis: How often the coupon payments occur: 1, 2, 4, or 12 times per year.
- Settlement Date: The settlement or purchase date.
- Maturity Date: The maturity or call date. This date always occurs after the settlement date. This date is called a call date when the issuer can pay off the bond before the maturity date. Maturity date can also be called the redemption date.
- Coupon Rate: The annual coupon rate as a percentage. This is the annual interest rate printed on the bond and is used to determine the coupon payment (the periodic payment of interest).
- Redemption Value: The redemption value is a percentage of the bond's par value that is paid to the owner when it is retired. If the calculation is to the maturity date, this value is 100. If the calculation is to a call date, this value varies. The par value is the value printed on the bond itself. A bond is often said to sell at a premium or discount. This is reflected in the redemption value. A bond that sells at a discount sells at less than par value. Bonds that sell at a premium are for more than par value.
- Yield: the yield to maturity or redemption. This is the percentage rate of return to the investor based on earnings from payments of principal and interest. This includes a sale at a premium or discount. To calculate yield, a value for price must be entered.
- Price: The dollar price per $100 of par value. To calculate the dollar price, a value for yield must be entered.
- Accrued Interest: The accrued interest based on the set par value. This value is calculated automatically when computing either yield or price.
- Par Value: the value listed on the bond itself, generally 100 (the standard set by HP), 1,000 or 10,000.
- Price [Par]: The dollar price per Par Value as set above. If Par Value is set to 100 then Price and Price [Par] are the same. If the bond, however, has $10,000 Par Value then Price [Par] is calculated in relation to that bond price.
A corporate bond matures on November 30, 2018 with a settlement date of August 14, 2016. It pays 13% coupon on a semi-annual basis, with a 30/360 day-count method. It will be redeemed at 100% of par and an annual yield of 13.75%. What is the price and accrued interest with a $1000 par value?
- Date Basis: 30/360
- Payment Basis: Semi-Annual
- Settlement Date: August 14, 2016
- Maturity Date: November 30, 2018
- Coupon Rate: 13.0%
- Redemption Value: 100%
- Yield: 13.750%
- Par Value: 1,000
The price is $98.51 and the accrued interest is $2.66. On a par basis, the price is $985.13.