"BOND, PURCHASE PRICE, QUOTED PRICE, FLAT PRICE, YIELD RATE. A BOND is a written contract to pay a fixed sum called the REDEMPTION VALUE on afuture specified date called the REDEMPTION DATE. FACEVALU is bond's face value.FACRATE% is its nominal or face interest rate. INVRATE% is the investor's desired interest rate. NUMYEARS is the term of the bond in years from purchase date. PAYMNINT is the payment interval in months (=1 for month, =3 for quarter, =6 for semiannully, =12 for annually). REDMVALU is bond's redemption value in dollars (not as percent of face value.) PERPAYMN is the periodic interest payment. PURPRICE is the purchase price. To find the purchase price of a bond between interest dates, one has to find the purchase price on the last interest due date QUOTEDPR and accumulate this sum at simple interest at the buyer's rateINVRATE% to the date of purchase using exact days EDAYS and exact time(360 d/yr)*** Answers to problems. *** Note: MS is semiannually. Last int date is 9-1-82(a) Set AAMONTH1=9, ADAY1=1, AYEAR1=1982, BBMONTH2=10, BDAY2=10, BYEAR2=1982, CCMONTH3=3, CDAY3=1, CYEAR3=2005, FACEVALU=5000, FACRATE%=6.5, INVRATE%=1, PAYMNINT=6, REDMVALU=5250 (5,000*1.05), Move cursor to INVRATE%. Type s. Type (esc) QUOTEDPR (ent). Type (esc) 2475 (ent). For range, type (ent). The yield rate is INVRATE% = 13.92. Type any key to exit. ||(a) A $5,000, 6.5%, MS bond redeemable at 105 on Mar. 1, 2005 is bought on Oct. 10, 1982 at quoted price of 45+1/2 ($2475). Find the yield. Type , to see answers. Type (F2) to return to helpfile. ''(c) Copyright PCSCC, Inc., 1993"
