Bonds are weird. Unlike a regular loan, they trade based on specific calendar dates. Calculating the price of a bond by hand involves a nightmare formula with exponents and day-counts.
Do not do that. Use the Bond Worksheet.
How to find it:
Press 2nd + [BOND] (it’s on the 9 key).
The Lingo (What the screen says)
- SDT (Settlement Date): The day you buy the bond.
- Format: MM.DDYY (Example:
12.3125for Dec 31, 2025).
- Format: MM.DDYY (Example:
- CPN (Coupon): The interest rate the bond pays you.
- RDT (Redemption Date): The day the bond expires (Maturity).
- RV (Redemption Value): Usually 100. This is the face value percentage.
- PRI (Price): What you pay for it.
- YLD (Yield): The actual return on investment (YTM).
The Scenario
You want to buy a corporate bond.
- Coupon: 6%.
- Maturity: It expires on 12-31-2030.
- Today: It is 01-01-2026.
- Target Yield: You want to make 7% on your money.
- Question: What Price (PRI) should you offer?
The Steps:
- Open the worksheet:
2nd[BOND]. - Clear it:
2nd[CLR WORK]. - SDT: Type
1.0126–>ENTER–>↓. - CPN: Type
6–>ENTER–> - RDT: Type
12.3130–>ENTER–> - RV: Leave at
100–> ↓`. - ACT/360: Leave as ACT (actual day count) –>
- 2/Y or 1/Y: Most bonds pay twice a year, so ensure it says
2/Y–> ↓`. - YLD: Type
7–>↓. - PRI: Press
CPT.
Result: 95.84.
Translation: You should pay $95.84 for every $100 of face value (a discount) to earn your 7% yield.