HP 12c Owners Manual

  Section 15: Savings  161 
 
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REGISTERS 
n: # Periods.  i: Nom. Rate/n  PV: 0  PMT: Used. 
FV: Eff. Rate 
R0–R.9: Unused   
 
1.  Key in the program. 
2.  Key in the annual nominal rate as a percentage then press \. 
3.  Key in the number of compounding periods per year then press t to 
obtain the effective annual interest rate. 
4.  For a new case return to step 2. 
Example...

162  Section 15: Savings 
 
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Nominal Rate Converted to Continuous Effective Rate 
This procedure converts a nominal annual interest rate to the continuous effective 
rate. 
1. Press 1\. 
2.  Key in the nominal rate as a percentage then press b. 
3. Press g>à. 
Example:
 What is the effective rate resulting from a 5
1/4% passbook rate with 
continuous compounding?
 
Keystrokes...

 
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  Section 16 
Bonds 
30/360 Day Basis Bonds 
A bond is a contract to pay interest, usually semiannually, at a given rate (coupon) 
and to pay the principal of the bond at some specified future date. A bond which 
is calculated on a 30/360 day basis is one in which the day count basis is 
computed using 30 days in a month and 360 days in a year. 
The following program...

164  Section 16: Bonds 
 
 
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KEYSTROKES DISPLAY  KEYSTROKES DISPLAY 
d 14-    33d 39-    33 
1 15-     1:1 40-  45   1 
8 16-     8+ 41-    40 
0 17-     0Þ 42-    16 
z 18-    10$ 43-    13 
n 19-    11¼ 44-    12 
gT 20-  43  242 45-     2 
1 21-     1§ 46-    20 
~ 22-    34fs  
- 23-    30  
 
REGISTERS 
n: 
∆ days/180  i: Yield/2  PV: Price  PMT: Coupon/2. 
FV: Red+Cpn./2...

  Section 16: Bonds  165 
 
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For a new case return to step 3. Note that only those values which have been 
changed need to be reentered and stored. 
8.  If yield is desired: 
a.   Press 0?0. 
b.    Key in the price as a percentage of par value and press ?1. 
c.   Press t to compute annual yield to maturity. 
For a new case return to step 3. Note that only those values which...

166  Section 16: Bonds 
 
 
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Annual Coupon Bonds 
For bonds which have annual coupons, use the following hp 12c program to 
evaluate price and accrued interest on an Actual/Actual day basis. This program 
may be modified for annual coupon bonds to be calculated on a 30/360 day 
basis. 
KEYSTROKES DISPLAY  KEYSTROKES DISPLAY 
fs  gÒ 19-  43  26 
fCLEARÎ 00- ?7 20-  44   7...

  Section 16: Bonds  167 
 
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REGISTERS 
n: Used  i: Yield  PV: Used  PMT: Cpn. or 0 
FV: Used 
R0: # Periods (n)  R1: Yield  R2: Coupon 
R3: Redemption  R4: Settlement  R5: Next Cpn.  R6: Last Coupon 
R7: Used  R8–R.5: Unused   
For annual coupon bonds calculated on a 30/360 day basis, insert d
 after 
gÒ
 at steps 19 and 23 (making the program two steps longer). 
1.  Key in...

 
 
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Appendixes  

 
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  Appendix A 
The Automatic Memory Stack 
Four special registers in the hp 12c are used for storing 
numbers durin
g calculations. To understand how these 
re
gisters are used, they should be visualized as stacked on 
top of each other.   
 
(For this reason, they are 
generally referred to as the “stack registers” or 
collectively as “the stack.”) The stack registers are...