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RPN Financial 12 manual · Chapter 10 of 16

Bonds

Find the price of a bond from its yield, and the yield from its price, with settlement and maturity dates.

10.1How the bond keys work#

A bond pays a fixed coupon twice a year and returns its face value of 100 at maturity. The calculator works per 100 of face value, with semi-annual coupons and actual days.

ValueWhere it goes
Annual coupon rate (percent)PMT: key in the rate and press PMT
Yield (percent a year)i for PRICE: key in the rate and press i
Price (per 100)PV for YTM: key in the price and press PV
Settlement dateY: key it in and press ENTER
Maturity dateX: key it in

Dates use the current format (month first by default): 1 January 2026 is 1.012026. See the chapter on dates.

10.2Find the price of a bond#

Enter the yield and the coupon, then the two dates, and press fPRICEyˣ (PRICE). X shows the price per 100, and Y shows the accrued interest.

P=∑tC/2(1+y/2)t+100(1+y/2)NP=\sum_{t}\frac{C/2}{(1+y/2)^{t}}+\frac{100}{(1+y/2)^{N}}
The price is the present value of the coupons and the repayment, discounted at the yield.
Example 10.1

A bond yielding the same as its coupon sells at par

  1. Yield 5, coupon 5, settlement 1 Jan 2026, maturity 1 Jan 2036. Press f, PRICE.

    5i5PMT1.012026ENTER1.012036fPRICEyˣ
Result of the example "A bond yielding the same as its coupon sells at par" The display shows: 5.00 / 5.00 / 0.00 / 100.00.
You should see100.00
Example 10.2

Coupon above yield: price above 100

  1. Yield 5, coupon 6.

    5i6PMT1.012026ENTER1.012036fPRICEyˣ
Result of the example "Coupon above yield: price above 100" The display shows: 5.00 / 6.00 / 0.00 / 107.79.
You should see107.79
Example 10.3

Coupon below yield: price below 100

  1. Yield 7, coupon 6.

    7i6PMT1.012026ENTER1.012036fPRICEyˣ
Result of the example "Coupon below yield: price below 100" The display shows: 7.00 / 6.00 / 0.00 / 92.89.
You should see92.89
Example 10.4

Accrued interest

  1. Settle part-way through a coupon period. Press x⇄y to see the accrued interest.

    6i6PMT4.012026ENTER1.012036fPRICEyˣx⇄y
Result of the example "Accrued interest" The display shows: 6.00 / 6.00 / 99.99 / 1.49.
You should see1.49

10.3Find the yield of a bond#

Enter the price in PV, the coupon in PMT and the two dates, then press fYTM1/x (YTM). X shows the yield to maturity as a yearly percent.

Example 10.5

Yield from a price of 107.7947

  1. Price 107.7947, coupon 6, the same dates. Press f, YTM.

    107.7947PV6PMT1.012026ENTER1.012036fYTM1/x
Result of the example "Yield from a price of 107.7947" The display shows: 107.79 / 107.79 / 6.00 / 5.00.
You should see5.00

10.4Bond errors#

If a date is not valid, or the maturity is not after the settlement date, you see Error 8.

Example 10.6

Maturity before settlement

  1. Swap the two dates.

    5i6PMT1.012036ENTER1.012026fPRICEyˣ
Result of the example "Maturity before settlement" The display shows: Error 8 / 5.00 / 6.00 / 1.01 / 1.01.
You should seeError 8

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