                                                                                  BOND PRICE AND INTEREST                                                                                                 This program computes the price                                                 and interest for a bond.                                                                                                                                                                                                                                                                                                         COPYRIGHT  CONTROL  DATA  1980

This program computes the price of                                              a bond, given that a buyer wishes a                                             certain rate of return from the                                                 bond.                                                                                                                   The price is the present value of                                               all future coupon payments plus the                                             redemption price minus the accrued                                              interest. The program assumes that                                              all interest is paid semi-annually.  

The interest due the previous                                                   owner is a function of the time                                                 he has held the bond. In the                                                    sample problem, the time to matur-                                              ity is 12 years and 5 months.                                                   Therefore, the last coupon must                                                 have been paid one month ago. The                                               sample problem shows one month                                                  interest due.    

If the purchase date                                                            is a coupon date, the coupon due                                                immediately is assumed to be                                                    received by the new owner.                                                                                                                                      This program is a modification of                                               BONDPR by Prof. J. Peter Williamson                                             Amos Tuck School of Business  

The user must supply the following                                              data. All must be
numeric.                                                                                                  .  Annual coupon payment                   (dollars)                                                                    .  Redemption price at maturity            (dollars)                                                                    .  Time to maturity (Years and             months)                                                                      .  Desired yield (percent)   

NOTE:                                                                                                                   When an input request requires                                                  multiple values, the computer will                                              continue to prompt (with a ?),                                                  until it has received sufficient                                                values.  

The shaded values indicate those        
that must be input by the user                                                  

Enter the following data items:                                                 Annual coupon (dollars)     ?6                                                  Redemption price (dollars)  ?100                                                Maturity (years,months)     ?12,5                                               Yield to maturity (percent) ?5.5 
  
Coupon        $      6.00                                                       Redemption    $    100.00                                                       Maturity            12.00 years                              
5.00 months                                                
Yield                5.50 percent                                                                                                                                                                       Price         $    104.45                                                       Accrued                                 
interest      $      0.50   


Enter the following data items:                                                                                         Annual coupon (dollars)   ?6                                                    Redemption price at                     
maturity (dollars)        ?100                                                  Present price (dollars)   ?104.45                                               Maturity (years,months)   ?12,5    

Coupon         $      6.00                                                      Redemption     $    100.00                                                      Present price  $    104.45                                                      Maturity             12.00 year(s)                            
5.00 month(s)                                                                                                                                                                                                                                                                                             YIELD                                   
-----                                      
Before taxes       5.50 percent  


