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BondCalc! Bond Values & Yields Pine Grove Software 67-38 108th Street, Suite D-1 Forest Hills, NY 11375 USA (800) 242-9192 (718) 575-9192 COPYRIGHT NOTICE (c) 1990, 1991 by Pine Grove Software, All Rights Reserved. BondCalc! is copyrighted software and as such is protected by the laws of the United States. You may distribute unmodified copies of this software to others but you may not sell it. If you are a distributor of shareware software, you may charge up to $10 for your disk duplication services. This product may NOT be distributed along with any other product that is being sold for profit without the expressed, prior written permission of Pine Grove Software. SOFTWARE LICENSE AGREEMENT BondCalc! may be used free of charge. (You may have paid someone to duplicate a copy of this program for you. Such costs do NOT constitute the payment of a license fee.) Your only obligation, if you choose to use BondCalc!, is to register your use of the program with Pine Grove Software. If you have any questions concerning this license agreement, please call us at (800) 242-9192 or (718) 793-4622. i WARRANTY/LEGALESE While these routines are easy to use, financial planning requires careful study. Therefore, Pine Grove Software specifi- cally disclaims all warranties, expressed or implied, including but not limited to, implied warranties of merchantability and fitness for a particular purpose or use. In no event shall Pine Grove Software be liable for any loss of profit or any other commercial damage, including but not limited to, special, inci- dental, consequential, or other damages. We suggest that you obtain professional guidance when making any major financial decisions. We are NOT responsible for your interpretations of the results obtained with these routines, even if it is shown that there is an error in the programming of a routine. While great care has been taken with regards to the accuracy of these routines. And the results that these routines produce have been checked against a number of sources, it is still possible that you may get different results than what you had expected. Some of these differences are caused by internal rounding of the calculations (usually off by no more than 1/10 of 1% over say 20 years); by the way interest and periods are calculated; by an error in using the program; or possibly, in an extreme case, by an error in programming. Therefore, when using this program, please use common sense. And if you are about to make what could be for you an important financial decision, triple check the results obtained with this or any calculator. ii INTRODUCTION Thank you for selecting BondCalc!. We believe that you have chosen a program second to none in its application class. BondCalc! performs more calculations faster and with less effort than any other program we have seen. BondCalc! is easy to use. There is never any programming needed to solve a problem. All you have to do is answer each question in a routine and press <F9> and, in most cases, the results will be displayed instantly. Much of what is found in this manual is also available through the program's help function. If you do get stuck at any time, press the <F1> key and a detailed help window will be displayed. If you are at the main menu and need information about a routine, simply highlight the routine's name and press <F1> and a description of the routine will be displayed. One final item. Like all software publishers, we hope that you take the time to at least browse through the manual. No matter how easy a program is to use, you will undoubtedly learn something by doing this. We want you to get the most from our software as you possible can. iii BondCalc! 1.0 (c) Pine Grove Software COPYRIGHT NOTICE . . . . . . . . . . . . . . . . . . . . . . i LICENSE AGREEMENT . . . . . . . . . . . . . . . . . . . . . . i WARRANTY . . . . . . . . . . . . . . . . . . . . . . . . . . ii INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . iii INSTALLATION . . . . . . . . . . . . . . . . . . . . . . . . 2 INITIAL INSTALL . . . . . . . . . . . . . . . . . . . . . . . 3 STARTING BONDCALC! . . . . . . . . . . . . . . . . . . . . . 4 SELECTING FROM THE MENUS . . . . . . . . . . . . . . . . . . 5 IMPORTANT KEYS . . . . . . . . . . . . . . . . . . . . . . . 6 HELP WITH HELP . . . . . . . . . . . . . . . . . . . . . . . 9 ENTERING/EDITING INFORMATION . . . . . . . . . . . . . . . . 10 THE ROUTINES OF BONDCALC! . . . . . . . . . . . . . . . . . . 11 YIELDS . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 VALUES . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 SOLVEIT! 4.0 . . . . . . . . . . . . . . . . . . . . . . . . 19 INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 iv BondCalc! 1.0 (c) Pine Grove Software INSTALLATION Installing BondCalc! on a Hard Disk from a 5.25" Original BondCalc! is easy to install. It is not copy protected. The program, as it is distributed on 5.25" disks, is compressed in order to save disk space. Therefore, the program can not be run from the original disk. To prepare for use, follow these steps (we assume you are putting the program on a hard drive): Type this: Press This: Comments: Place the original BondCalc! disk in drive A: (or B:) c: <enter> log on to the hard drive, your hard drive may be a different letter cd \ <enter> change to the root directory md Bonds <enter> make a directory for BondCalc! cd \Bonds <enter> make the BONDS directory the default directory copy a:*.* <enter> copy all files from the distribution disk to your hard drive if you put the original disk in drive b: change the a: to b: in this step BondCalc <enter> this is the expand (unzip) step Bonds <enter> this starts the program so you can set it for your system during this step, you will enter your name and tell the program if you have a color monitor. When you are done press <F9> and you will exit Bonds <enter> The program starts with this command INSTALLING BondCalc! on a Hard Disk from a 3.5" Original: Follow the steps above, except ignore the "Bondsexp" command. As the program is distributed on a 3.5" disk it does not need to be decompressed. 2 BondCalc! 1.0 (c) Pine Grove Software INITIAL INSTALL This step assumes all files are decompressed and that BondCalc! is on your hard drive or a working diskette. If this is not the case see "Installing BondCalc! on a Work Disk." The first time you run BondCalc!, you will be asked to enter your name and to tell the program whether or not you are using a monochrome monitor or a color monitor. Simply enter the name that you will want to have printed on the reports and answer the question "Y" or "N" as to whether or not you see colors on your screen. Once you are have done this, press <F9> to set the software for your computer. Now, restart the program. With some versions of the program, you may be also asked to enter the current date. If you are asked to do this, the date must be entered in a MM/DD/YY format. Please be sure to set the correct date so that BondCalc! can do it's date calculations correctly. 3 BondCalc! 1.0 (c) Pine Grove Software STARTING BONDCALC! If you have installed BondCalc! on a hard drive according to the instructions under "Installing BondCalc! on a Work Disk", change to the drive that you loaded it on. For example, if BondCalc! is on drive c: do the following: Enter: Comment: c: changes to drive BondCalc! is on if you have loaded it on another drive substitute the appropriate drive letter cd \Bonds change to the suggested directory that B- ondCalc! is in Bonds this starts the program or Bonds /G when program starts, initial graphics screen is suppressed or Bonds /I starts BondCalc! in install mode so that you can customize settings 4 BondCalc! 1.0 (c) Pine Grove Software SELECTING FROM THE MENUS When the program starts you will see the BondCalc! logo. You may pass by this screen quickly by pressing the space bar. Once you have done this you will see the opening menu. This menu is refereed to in this manual as the main menu. You may pick a menu item two ways. You may use your cursor keys to move the highlight bar up and down. When the bar is over the menu item that you want, press <Enter>. Or secondly, you may type the highlighted letter (or capital letter) of a menu item and that item will be selected. While the cursor bar is on a menu item, if you press <F1> a help window will describe what the routine does. See also the appendix for a diagram of the menu structure. In addition, see "Local Menus", else where in this manual. 5 BondCalc! 1.0 (c) Pine Grove Software IMPORTANT KEYS Throughout the BondCalc!'s instructions and help screens, you will see symbols such as <F1> or <Esc>. This means, find the keys on your keyboard that have an F1 or Esc written on them and press them to activate the feature. Often you will also see a symbol such as <^Y>. This means to hold the <Ctrl> key while pressing the <Y> key. The technique is like using the shift key to produce a capital "Y". This symbol <^Y> is called "Control Y". While the help lines at the bottom of a routine's screen will remind you about some of the keys that you may use at any given moment, it is impossible to list all of the keys available. It is VERY IMPORTANT for efficient use of BondCalc! to remember the options that are available to you. In selected fields, these keys will produce the following: <Esc> exits what you are doing and restores the original value to the field. This is the "I don't want to be here key!". This is particularly useful when printing. <F1> brings up the help system. Press <F1> a second time and you will see a help index. Use the cursor keys to high light a topic of interest and then press <Enter> to display the help informa- tion for that topic. <F3> starts printing. In some routines you will have the option of sending the report to the printer, disk drive or screen. When appropriate, simply select the destination from the menu. <F4> sends a line feed to the printer. Use this key (rather than the line feed on the printer) to advance the paper so that you can have the desired spacing between the print outs for the routines. NOTE: By using this key instead of the printer's line feed key, you will keep the program's internal line counter synchronized with the printer. This will prevent a print out from being split across two pages. 6 BondCalc! 1.0 (c) Pine Grove Software <F5> sends a form feed to the printer. This will eject the current page and IF the paper has been correctly set in the printer, it will align the printer to print at the top of the next sheet of paper. Use this key INSTEAD of the form feed button on the printer. (See the note on the <F4> key.) <F9> performs the action. Usually calculates. While in copy mode, it performs the copy. When a screen is asking you for informa- tion, such as before a printout, <F9> is used to complete the data input. (Consider this to be the "DO-IT!" key.) <tab> moves the cursor from one field to the next field. <shift><tab> moves the cursor back one field. <PgUp> moves the cursor to the top of the column. <PgDn> moves the cursor to the bottom field of the column. <^PgUp> moves the cursor to the first field on screen. <^PgDn> moves the cursor to the last field on screen. <^Y> clears the field. That is, it deletes the contents of a field. If you are having trouble entering data and BondCalc! is beeping at you, try clearing the field using <^Y>. Then start entering the data again. <^R> restores the original contents of the field <Home> moves the cursor to the beginning of the field. <End> moves the to the end of the field. <^ > (Ctrl left arrow) moves cursor a word at a time to the left. <^ > (Ctrl right arrow) moves cursor a word at a time to the right. <Del> deletes character at the cursor. <BackSpace> deletes character to left of the cursor. <^Home> deletes from beginning of subfield to cursor. Example: When entering a date in the 'MM/DD/YY' format, using <^Home> while on the second 'D' of the 'DD' part of the date will delete just the 'DD' part of the entry. In other words, the 'DD' is the subfield. 7 BondCalc! 1.0 (c) Pine Grove Software <^end> deletes from cursor to end of the subfield. This is the opposite of the <^Home> key. <^T> deletes word to right of the cursor. <Ins> toggles insert mode on and off. <Alt><F1> will display the previously called help topic. 8 BondCalc! 1.0 (c) Pine Grove Software HELP WITH HELP Press the <F1> key at any time to bring up a context sensi- tive help window. If <F1> is pressed again while help is being displayed, a list of help topics will be shown. You may use the cursor keys to move to any topic. Press <Enter> and then help on that topic will be displayed. <Alt><F1> will display the previously called help topic. <Esc> will exit a help window. While in some help windows, one or more related help topics may be shown. Use the cursor to move the highlight bar to one of these topics and press <ENTER> to read the help information on the related topic. Also, always note the bottom right corner of the help window to see if there is additional help information. This will be indicated by the PgUp/PgDn indicators. 9 BondCalc! 1.0 (c) Pine Grove Software ENTERING/EDITING INFORMATION There are three basic types of data or information that BondCalc! will allow you to enter. The first data type is numeric. Simply enter the appropriate value and press enter. If you need to clear a value press <Y> while holding the <Ctrl> key. <^Y> The second type of entry is a date type. Enter any valid date in a MM/DD/YYYY format. Do not type in the </>'s. The program provides them automatically. Also, with a date you can use the <Tab> key to move to any one of the three fields (month, day or year). Once at a field, enter the correct value and press enter. When in the year field, it is possible to enter just the last two years of a date and BondCalc! will fill in the missing first two numbers if the year is in this century. In the month or day field it is NOT necessary to supply a leading zero. You may enter 2 for February. You do not need to enter 02. If you use this technique, you must move to the next field by pressing the <Tab> key. NOTE: If you do not enter a valid date, BondCalc! will beep when you press enter. The third data type is when you are limited to a few specific choices. An example of this is Compound Period in the loan table routine where the range of input is limited to 8 or so choices. To change from one acceptable value to another, press either the <space bar> or the dark gray <+> or <-> keys located on the right side of the keyboard. Once the correct value is selected, you may move on to the next field by pressing <Enter> or using the appropriate cursor key or the <Tab> key. Moving Around BondCalc! allows you to compare yields and values of 3 bonds simultaneously. The best way to enter the data for each bond is to enter a value and then use the down arrow key to move down to the next field. If you would rather, you can move to the next bond by pressing enter. Note that <PgUp> and <PgDn> move you to the top and bottom of a column respectively. While <Tab> and <ShiftTab> moves you right or left one field respectively. 10 BondCalc! 1.0 (c) Pine Grove Software THE ROUTINES OF BONDCALC! A Bond A BOND is a security which represents a loan from an investor to the issuer. The face value of the bond is repaid by the issuer on the maturity date. The coupon rate of interest is paid to the registered investor usually on a semiannual basis. YIELDS This routine solves for three yields: Current Yield, Yield-to-Maturity and Yield-To-Call. Looking at potential yields of course allows you to evaluate a bonds attractiveness as an investment. Yield computations do not however take into account the risk involved with a particular issue. The Current Yield is the dollars of interest paid in one year divided by the Current Price. (One year's interest is equal to the Par Value multiplied by the Coupon Rate.) The Current Yield assumes that interest payments are NOT reinvested. The Yield-To-Maturity assumes that the interest payments will be reinvested at a rate equal to the bond's original YTM. YTM calculations do not provide total return information on an absolute basis since there is this assumption being made. The value of a YTM calculation is so that different bonds can be compared to each other on a relative basis. Often bonds can be called (debt paid off) by the issuer and they will often do so if interest rates fall. Therefore, it is often a good idea to see what the rate of return would be if a bond is called. This is the Yield-to-Call value. The same caveats apply to YTC as they do to YTM. Current Price While bonds are usually issued at Par, they are available in the resale market at either a premium or a discount. If a bond is quoted in the papers at a discount of $86, enter $86 here. We are assuming that the actual Par value is $1000. Coupon Rate The rate of interest a bond pays annually. This is usually compounded semiannually. To determine the dollars of interest paid, multiply the Par Value by the Coupon Rate. 11 BondCalc! 1.0 (c) Pine Grove Software Settlement Date This is the date that the buyer and seller exchange cash and securities. This is usually 5 business days after the trade date for corporate, municipal and agency bonds. US Government Bonds settle one business day after the trade date. Maturity Date The date that the Par Value must be repaid. Any maturity is legally permissible, however bonds usually have a maturity of between 10 and 40 years from the date of issue. Call Date Often bonds will be issued with a call provision. The call can take place on or after a specified call date. This is important when evaluating a bond because there is no guarantee that a particularly high rate of return will be maintained until the maturity date. Call Price Usually, if a bond is callable, the issuer pays a penalty for the privilege of being able to call the bond. This is known as the Call Price which, of course, is higher than the Par Value. The Call Price is often equal to the Par Value plus on year's interest. Par Value This is the stated face value of the bond, it is often $1,000. This is the amount of money that the firm needs to repay on the maturity date. Bond prices are usually quoted per $100 of Par Value. That is, if a bond's par is $1,000 and it's current price is $860, the price quoted in the business pages of newspapers will be $86. BondCalc! follows this convention by setting the default Par Value to $100 to indicate that the price calculated is actually per $100 of par. Please note that you don't have to do the calculations per a single bond. If you want to purchase bonds worth $50,000 at par, you can enter $50,000 in the Par Value field. The resulting calculations will show the price that has to be paid for the entire $50,000. 12 BondCalc! 1.0 (c) Pine Grove Software Bond's Description Enter a description of the bond here. For example, The New York Times lists the Shell Oil's 7.25% of 2002 as ShellO 7 1/4 02. Compounding Generally, interest on bonds is compounded semiannually. Day's Per Year For the purpose of calculating Accrued Interest on corporate bonds, every month is assumed to have 30 days and each year is assumed to have 360 days. On the other hand, when calculating accrued interest on Government Bonds. it is generally assumed that a year has 365 days in it and the exact number of days are used. Current Yield Current Yield is the number of dollars of interest paid to an investor over a one-year period divided by the bond's market price. This figure is expressed as a percentage. Since bonds' market values change constantly, so do bonds' current yields. The current yield is a very important value if you do not plan to reinvest the interest payments. Yield-to-Maturity What is the approximate rate of interest if the bond is held to maturity? We say "approximate rate of interest" here because we need to assume that ALL interest payments can be reinvested at the coupon rate. THIS IS HIGHLY UNLIKELY. The value to the investor of the Yield-to-Maturity figure is not it's absolute value, but rather its relative value when compared to other Yield-to-Maturity figures for different bonds. With the above in mind, it is important to understand that an investor should NEVER compare a Yield-to-Maturity for one bond that was derived by using a program or calculator with the Yield- to-Maturity for another bond that was derived by using another program or calculator. The reason for this is simple. Historically, Yield-to- Maturity values have been determined by using interpolation. That is, there was no formula that would provide a Yield-to-Maturity 13 BondCalc! 1.0 (c) Pine Grove Software result. This could lead to slightly different answers from one calculator or program to another. However, this is not a problem, since ALL Yield-to-Maturity values are going to be, in fact, erroneous, since they assume that the interest payments will be reinvested at exactly the same rate as the coupon interest rate. BondCalc! on the other hand, solves for Yield-to-Maturity, by using a formula developed by R.J. Rodreguez. Rodreguez's formula, known as the Rule-of-Thumb Yield, gives slightly different results that those obtained through interpolation. The reason that we choose a Rule-of-Thumb Yield for this program is because it is MUCH faster to solve for Yield-to-Maturity using a Rule-of- Thumb method than using an interpolated method. (SEE NOTES AFTER INDEX!) Yield-to-Call Some bonds have a Call provision. If interest rates drop, the issuer of the bond can "call" the bonds, that is buy them back at a call price which is usually Par plus one year of coupon interest. The Yield-to-Call will tell you your rate of return if you held a bond until it was called. Caution: Watch buying a bond that is selling for a premium that can be called. It is possible for the bond to be called which might result in a capital loss. (That is, the issuer of the bond pays you the Call Price and you paid the premium.) See Yield-to-Maturity for caveats that apply to the Yield-to- Call result. (SEE NOTES AFTER INDEX!) VALUES If the coupon rate of a bond is 8%, the current price is $105 and market interest rates are at about 7.5%, is this a good investment? Use this routine to find out. Besides calculating what the current price of a bond should be to achieve a desired yield, this routine also calculates the accrued interest, future value to maturity and, optionally, the affects of inflation and/or taxes. Tax Bracket If you wish to see the total dollar return after an allowance for taxes, enter your tax bracket here. You may wish to take into account not only Federal taxes, but State and Local taxes as well. 14 BondCalc! 1.0 (c) Pine Grove Software Inflation Rate If you want to see what your purchasing power is after inflation, enter an estimated rate for inflation here. Accrued Interest Accrued interest is the interest that the seller is entitled to receive from the buyer on the settlement date. Accrued interest is the interest that the seller has earned while owning the bond for the time after the last interest payment date up until the settlement date. FV w/Compounding This is the value that the bond will have if held to maturity allowing for compounding of the interest payments. Please note, if you are doing calculations for a bond that actually has a par value of $1,000 but you want to see the price per $100 by entering $100 in the Par Value field, you will have to multiply the results in the FV field by 10. Purchasing Power This is the future value at maturity allowing for inflation and/or taxes. Desired Yield Enter the desired rate of return. BondCalc! will calculate the price (Present Value) that you should pay for a bond considering it's coupon rate and term. 15 BondCalc! 1.0 (c) Pine Grove Software MESSAGES "CALC" When the "CALC" message is displayed in the upper right hand corner of the window, this means that the results that are currently shown are not accurate. To get rid of this message and to display the correct calculations, press the <F9> key. "Out-of-Range" Occasionally, you will see an "Out-of-Range" message dis- played in the upper left corner of the window. When you see this message, it means that the resulting answer to a calculation produced a result that was too large to display. Therefore, DO NOT accept the displayed answer as being correct!! 16 BondCalc! 1.0 (c) Pine Grove Software SETTING OTHER OPTIONS, THE INSTALL MENU The install (or setup) function will allow you to customize certain features of the program. To start install, you must first be in the directory that BondCalc! is located in. If you set the program up on your hard disk the way we suggested at the start of this manual, you would log on to the drive that BondCalc! is located on and type "CD \Bonds". Then from there enter: Bonds /I You will then be shown a menu from which you can set the follow- ing items: Color Picker Selecting the color picker will give you another menu of choices so that you can completely customize BondCalc!'s screen colors. You will be able to change: Frame (menu frame or window border) Title (menu/window title background) Unselected Text (normal menu and screen text) Selected (text in menu's cursor) Pick (character that is menu choice) Help (help lines at bottom of a window) Before you start to change the default colors, please make sure that you are working with a backup copy!! You may pick a color for BondCalc!'s text by picking the unselected text option. By selecting this or any color option, you will be shown a box with text written in it. If you press the space bar the colors will change. Note how first all possible text colors are displayed for a particular background color. Once all text colors are shown for the background color, the back- ground color will change and you will be rotated through all of the text color combinations again for the new background color. You can move "BACKWARD" or "FORWARD" through the color choices by using the <+> or <-> keys on the right side of the keyboard near the numeric keypad. 17 BondCalc! 1.0 (c) Pine Grove Software Once you see a color combination that you like, press <Enter> to accept it. If you wish, you may press <Esc> to cancel the color picking option and to return to the install menu without setting a color. You may set the colors for any of the options using the same technique. When you are finished setting the colors, hit <Esc> from the "color picker" menu to return to the main install menu. (Remember, If you hit <Esc> while the color pick window is shown you will not be setting the new color, <Esc> is to exit the color pick menu only.) Default Subdirectory The default subdirectory is the directory that BondCalc! looks into to find its overlay and data files. There is no need for you to install a default subdirectory if the program is started while you are in the subdirectory that BondCalc! is in on your hard drive. Budget Items Not Applicable in BondCalc! Net Worth Items Not Applicable in BondCalc! Page Length Page length in this case is actually a misnomer. Entering a value here will actually set BondCalc! for the number of lines that you want to print on a page. For standard 8.5 x 11 inch paper we suggest a setting of 60 line to allow for an appropriate bottom margin. You can set any value from 5 lines to 255 lines. Save Changes & Quit This option will save the changes that were made while using the install routine. Thus, when you start BondCalc!, these changes will become the program's default settings. Quit Install/No Save This option will ignore all changes that were just made while in the install routine. 18 BondCalc! 1.0 (c) Pine Grove Software SolveIt! 4.0 SolveIt!, The Financial Calculator was released in 1985. It has gone through many revisions over the years. In addition to the routines from BondCalc!, SolveIt! contains over 30 other routines that answers questions regarding money. Among those 30 routines are: Amortization Business/Personal Net Worth statements Business/Personal Budgets & Cash Flow Analysis Rental Income Analysis Annuity Payout or Time to Withdrawal Schedules Future Value Present Value of an Amount or Present Value of a Series Internal Rate of Return Accelerated Payment Loan Calculator Equivalent Interest Rate Interest Rate Earned Calendar Math Interest Due between dates or for any number of days Purchasing Power Affordable House Gross Profit Margin Weighted Averages SolveIt! allows for interest rates to be adjusted throughout the routines. Additionally, payment or deposits can be increased/decreased or skipped. Many routines allow for the effects of inflation. The program allows you to choice from 8 payment or deposit periods and from among 10 compounding periods. SolveIt! is a powerful financial calculator, yet it is easy to use. The New York Times said that SolveIt! is " still surprisingly fast." And syndicated computer columnist, Michael J. Himowitz said that "SolveIt! is solid, utilitarian software that can solve simple and complex problems for business operators, business students and home users with no hassles..." Call Pine Grove Software at (800) 242-9192 for additional information. 19 BondCalc! 1.0 (c) Pine Grove Software PINE GROVE SOFTWARE Pine Grove Software was founded in 1984. AmortizeIt!, MoneyCalc!, RentIt!, BondCalc!, Budget Plus! and SolveIt!, The Financial Calculator, are our six software packages. We offer custom programming services as well as modification of our programs for your use. Pine Grove Software 67-38 108th St., Suite D-1 Forest Hills, NY 11375 USA (800) 242-9192 or (718) 575-9192 20 BondCalc! 1.0 (c) Pine Grove Software OTHER PROGRAMS SolveIt! is our flagship product. Our other programs at this time are subsets of this program. They offer an even more econom- ical way to buy just the routines that you need. MoneyCalc! Includes FV, PV, IRR, NPV, ANNUITY calculator. Budget Plus! Includes Budget & Net Worth routines. RentIt! Includes RENTAL ANALYSIS, AFFORDABLE HOUSE, 2 MORT As of November 1991, each of the above programs sells for $50 plus $5 for shipping except for SolveIt! which sells for $90 plus $5 shipping. After you register a program with us you will automatically receive the next upgrade at no charge. 21 BondCalc! 1.0 (c) Pine Grove Software REFERENCES Haim Levy & Marshall Sarnat, Capital Investment & Financial Decisions, Prentice/Hall International, 1978 Hewlett-Packard Business Calculator Owner's Manual, HP-10B, Business Calculator Owner's Manual Edition 2, June 1989 Shillinglaw, Gordon, and Ronen, Accounting, A Management Approach Trost, Stanley R., Useful Basic Programs for the IBM PC, SYBEX 1983 22 BondCalc! 1.0 (c) Pine Grove Software INDEX "CALC" . . . . . . . . . 16 Selecting From the Men 5 "DO-IT!" . . . . . . . . 7 Settlement Date . . 12 "Out-of-Range" . . . . . 16 SolveIt! . . . . . 19 <Ctrl> . . . . . . . . . 6 Starting BondCalc! . 4 <Esc> . . . . . . . . . . 6 Tax Bracket . . . . 14 <F1> . . . . . . . . . . 6 unzip . . . . . . . . 2 <F3> . . . . . . . . . . 6 Values . . . . . . 14 <F4> . . . . . . . . . . 6 Yield-to-Call . . . 14 <F5> . . . . . . . . . . 7 Yield-to-Maturity . 13 <F9> . . . . . . . . . . 7 Yields . . . . . . 11 <tab> . . . . . . . . . . 7 Accrued Interest . . . . 15 Bonds . . . . . . . . . . 11 Bonds /G . . . . . . . . 4 Bonds /I . . . . . . 4, 17 Call Date . . . . . . . . 12 Call Price . . . . . . . 12 Color Picker . . . . . . 17 Compounding . . . . . . . 13 Coupon Rate . . . . . . . 11 Current Price . . . . . . 11 Current Yield . . . . . . 13 Day's Per Year . . . . . 13 Default Subdirectory . . 18 Description . . . . . . . 13 Desired Yield . . . . . . 15 Entering/Editing . . . . 10 Expand . . . . . . . . . 2 FV . . . . . . . . . . . 15 Help with help . . . . . 9 Important keys . . . . . 6 Inflation rate . . . . . 15 Initial install . . . . . 3 Installation . . . . . . 2 Interpolated . . . . . . 14 Maturity Date . . . . . . 12 Messages . . . . . . . . 16 Other options . . . . . . 17 Par Value . . . . . . . . 12 Pine Grove Software . . . 20 Premium . . . . . . . . . 14 Purchasing Power . . . . 15 References . . . . . . . 22 Rodreguez . . . . . . . . 14 Routines of BondCalc! . . 11 Rule-of-Thumb . . . . . . 14 Save Changes & Quit . . . 18 23 NOTES: Since the manual was written, we made a change in the Yield-to-Maturity and the Yield-to-Call calculations. We said that we were using a Rule-of-Thumb method. This has been changed so that we are now using the more conventional method, i.e. Interpolation. This results in a slight decrease in performance depending on the computer hardware that is used.