HP 12c Platinum Reference Manual page 66

66 Securities and Options
12c platinum / 12C
RPN KEYSTROKES
fS
g(000
fs
n: Unused
FV: 0
R : Coupon rate
3
R : Used
7
Program Instructions:
1. Key in the program.
2.
Key in the purchase price and press ?1.
3.
Key in the sales price and press ?2.
4.
Key in the annual coupon rate (as a percentage) and press ?3.
5. Key in capital gains tax rate (as a percentage) and press ?4.
6. Key in the income tax rate (as a percentage) and press ?5.
7. Press gÕ.
8. Key in the purchase date (MM.DDYYYY) and press \(³).
9. Key in the assumed sell date (MM.DDYYYY) and press t to find the after-tax
yield (as a percentage).
10. For the same bond but different date return to step 8.
11. For a new case return to step 2.
Example: You can buy a 7% bond on October 1, 2003 for $70 and expect to sell it in 5
years for $90. What is your net (after-tax) yield over the 5-year period if interim coupon
payments are considered as income, and your tax bracket is 50%?
(One-half of the long term capital gain is taxable at 50%, so the tax on capital gains alone
is 25%)
12c platinum / 12C
RPN Keystrokes
70?1
90?2
7?3
25?4
50?5
gÕ
10.012003\
10.012008t
DISPLAY
42 22 g(000
030,
031,43,33,000 fs
REGISTERS
i: Yield PV: Used
R : Used R
0
R : Capital rate R
4
R -R : Unused
8 .5
12c platinum
ALG Keystrokes
70?1
90?2
7?3
25?4
50?5
gÕ
10.012003³
10.012008t
12c platinum
ALG KEYSTROKES
: Purchase price
1
: Income rate
5
Display
Purchase price.
70.00
Selling price.
90.00
Annual coupon rate.
7.00
Capital gains tax rate.
25.00
Income tax rate.
50.00
Purchase Date.
10.01
% after tax yield.
8.53
DISPLAY
030,43,33,000
PMT: Used
R : Sales price
2
R : Used
6
Comments