Monroe 3180 ユーザーガイド

 

 

23

VALUE OF A BASIS POINT 

The  VAL key provides two calculations which combine several TRADER II functions to obtain the 
movement of either price or yield.  VAL calculates the difference in dollar price, if the yield moves by .05% 
(Codes 0 – 4 and 6) or if the discount rate changes by .01% for Code 5.  DISPLAY, VAL calculates the 
difference in yield in basis points if the price changes by 1/32

nd

 of a point. 

 
The VAL key also allows you to enter other spread values. 
 
 

VAL accepts number of basis points (up to 99), and calculates the difference in price, between 
the dollar price and the dollar price at the yield plus the entered basis point. 

 
 DISPLAY, 

VAL accepts the number of 32

nds

, and calculates the difference in basis points 

between the yield and the yield at the dollar price plus the entered 32

nds

 (thirty second of a point). 

 
EXAMPLE:  

A 6.5% Agency Bond maturing on November 24, 2010 is sold to yield 7.75%.  Find the 

dollar price and compute the dollar movement if the yield changed by 5 basis points. 
 
 

DISPLAYED 

 
 

0   

CODE 

Security Code 0. 

 
 

 

6.2487 

SETTLEMENT 

Settlement Date Wed.  06-24-1987 

 

 

 

 

DATE 

 
Set the FED/MUNI switch and status line as follows: 
 
 
FED/MUNI SWITCH to MUNI 
 
 
 

DISPLAYED 

 
 6.5 

 

COUPON  Coupon 

Rate 

6.500% 

 
 

11.2410 

MAT 

Maturity Date Wed. 

11-24-2010 

  

 

DATE 

  

 

END 

 
 7.75 

TO 

Price 

86.580(M) 

  

 

PRICE 

 
 

 

 

VAL 

VAL .05 = 4.780 

 
Now compute how much the yield will change if the bond moves 1/32 of a point. 
 
 

DISPLAYED 

 
  

 

DISPLAY  VAL 

1/32

nd

 0.30 Basis Points 

  

 

VAL 

 

C=0  PER 30/360  SEMI 06-24-87  MATURITY