Settlement Date = 0/0/0

Maturity Date = 0/0/0

Discount Rate =

Redemption Value =

Par Value = 1

Price =

Yield =

Calculates price and yield on a discounted note.

A note is a written agreement to pay the buyer of the note a sum of money plus interest. Notes do not have periodic coupons, since all interest is paid at maturity. A discounted note is a note that is purchased below its face value. It uses the Actual/360 day count method.

- 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.

- Discount Rate: Discount rate expressed as percentage.

- 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.

- Par Value: the value listed on the bond itself, generally 100, 1,000 or 10,000.

- Price: purchase price per $100 of face value.

- Yield: yield as an annual percentage.

What is the price and yield of a $100 par value bond with a settlement date of October 28, 2010 and a maturity date of March 15, 2013? The discount rate is 8.75% and the redemption value is 103.

- Settlement Date: October 28, 2016

- Maturity Date: March 15, 2020

- Discount Rate: 8.75%

- Redemption Value: 103

- Par Value: 100

The bond's price is $72.11 and it has a yield of 12.499%.

Settlement Date

Maturity Date

Discount Rate

Redemption Value

Par Value

Price

Yield

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