Monroe Trader III User manual

TABLE OF CONTENTS
Power-on “Let’s Get Started” page 1
General operations page 1
“Let’s run this thing”
<PRINCIPAL/INTEREST>
entering number of bonds page 2
computing principal page 2
computing accrued interest page 2
with a concession <CONC> page 3
WINDOW operations
how they work page 3
opening/closing page 3
<CALL DATE> <CALL PRICE> page 4
<NUMBER OF DAYS>
computing days between all dates page 5
<MARK UP>
value of 5 different values page 6
value of any entry from .1 to 99.9 page 6
variance page 7
<CURRENT YIELD/DURATION/CONVEXITY>
current yield page 8
duration to Calls & Maturity page 8
convexity to Calls & Maturity page 8
<AFTER TAX YIELD> & BEFORE TAX PRICE/YIELD
entering tax rates page 9
computing ATY to Calls & Maturity page 9
computing Before Tax Price & Yield page 10
<SAVE ISSUE>
saving issues (250 max.) page 11
<CLEAR ISSUE>
deleting issue from screen page 12
deleting issue from SAVED memory page 12
a “commercial”
<CODE>
direct entry page 13
look-up all Codes in a List page 13
entry from List page 13
<SETTLEMENT DATE> page 14
<32nds>
converting 32nds to decimals page 15
automatic conversion of decimals to 32nds page 15

<DISPLAY> <32nds> from a decimal value page 15
<CODE> <6> STEPPED COUPON BONDS
message Window for entry of date & rate page 17
entry of Conversion Date & Conversion Rate page 17
<SAVE ISSUE> page 19
<RECALL ISSUE>
selecting one issue page 21
look-up all issues in a List page 21
<EXTENDED FNCT> <START SWAP/PRODUCTION> page 23
Re-pricing issues (one or a group) page 24
PRODUCTION - averages for a single group of issues page 25
SWAP - averages for two groups of issues page 26
SPECIAL SETUP FUNCTIONS: page
27
Date and Time <SETUP> or <SPCL FNCT> <1> <1> page 28
Calculator <SETUP> or <SPCL FNCT> <1> <2> page 29
Yield Display <SETUP> or <SPCL FNCT> <1> <3> page 31
Dollar Price <SETUP> or <SPCL FNCT> <1> <4> page 32
Price in 32nds <SETUP> or <SPCL FNCT> <1> <5> page 33
Mark Up/Down <SETUP> <SPCL FNCT> <1> <6> page 34
Days to Settle <SETUP> or <SPCL FNCT> <1> <7> page 35
Holidays <SETUP> or <SPCL FNCT> <1> <8> page 36
Issue Recall Settings <SETUP> or <SPCL FNCT> <1> <9> page 37
MAINTENANCE FUNCTIONS for Version 2.07 or higher:
Key History <SETUP> or <SPCL FNCT> <2> <1> page 38
Initial Unit <SETUP> or <SPCL FNCT> <2> <2> page 38
Unit Information <SETUP> <SPCL FNCT> <2> <3> page 39
Unit Serial Number
Software Version and Date
Software Options List <SETUP> <SPCL FNCT> <2> <4> page 40
BASIC CALCULATOR WINDOW:
Algebraic functions page 41
Dollar Price used in calculations page 42
Principal amount used in calculation page 44
Calculation used to compute a Yield page 45
GENERAL OPERATIONS

LET’S GET STARTED
Plug the BASYS POINT into the adapter and the wall outlet (of course). The
BASYS POINT is ON. There’s no on/off switch. The BASYS POINT turns off by
itself when it’s not being used. There is a “time out” option which you can adjust -
-- later.
If the screen is off, touch a key, it’s ON.
Let’s run this thing
See the CODE #, description and settlement date. You’re ready to calculate an
issue. Enter a coupon amount, the entry is shown on the ENTRY LINE (a clever
name) - which is the last line on the display. Press <COUPON> (these little
things < > mean a specific “KEY”.
Enter a maturity date <MATURITY DATE> (the old fashion way - MM.DDYY).
Notice the date - the century is displayed and so is the day of the week. Enter a
yield and press <TO PRICE>
There you have it - ALL OF IT!
PAGE 1
<PRINCIPAL/INTEREST>
Enter a number of bonds (let’s use 100 for starters)
and press <PRINCIPAL/INTEREST>. A WINDOW opens.

As you can see the Number of bonds and the days of Accrued Interest are
displayed along with very readable dollar amounts. Could it get any easier?
PAGE 2
Entering a Concession <CONC>, i.e. 0.25 <CONC>

ENTER 100 BONDS <PRINCIPAL/INTEREST>
A word on the use of WINDOWs:
1. The <C/CE> will clear any WINDOW and return the screen to the status that
existed before the function key opened the WINDOW. The <C/CE> is the clear
key on the calculator pad.
2. Any other function key that opens a WINDOW will also close an existing
WINDOW and present the new WINDOW data.
PAGE 3
<CALL DATE> and <CALL PRICE>
Now, with the original Issue on the screen (previous WINDOW cleared <C/CE>.),
let’s add two CALLs. The 1st call date and price will be entered on the <1ST

CALL DATE> (use 12.0100) and <1ST CALL PRICE> (use 102.000). A new line
will be shown above the MATURITY DATE line. Enter a second call <2ND CALL
DATE> (use 12.0108) and <2ND CALL PRICE> (use 100.000) All dates entered
are shown in chronological order regardless of the order of entry.
If you enter an illegal date (a date before the SETTLEMENT DATE or a date after
the MATURITY DATE, an error BEEP will be sounded and an error message will
appear in a small window. The data will not be accepted.
After both the date and price are entered the new YIELD to PRICE calculations
will occur automatically. Notice the lowest PRICE will be highlighted. And, hold
onto your hats, if the PRICE TO EITHER CALL is lowest the YIELD TO
MATURITY will be computed and displayed automatically in a WINDOW. We call
this window the “kicker window”.
The lowest price is used for the Principal & Interest extensions, Mark Up/Down,
After Tax Yields, etc.
The calculator will use the lowest price or yield (depending upon which was the
computed value) in any calculation performed after the Price/Yield computation.
The calculator results can also be re-entered into the Bond Trader as a Price or
Yield.
PAGE 4
<NUMBER OF DAYS> or Days Between Dates
Now, with the Issue plus Call data on the screen, let’s see how many days there
are between all the dates by pressing <NUMBER OF DAYS>. Any open
WINDOW will be cleared automa-tically when the new WINDOW opens.

The data in this WINDOW are self-explanatory. Yes?
Close the WINDOW by pressing <C/CE> or try <MARK UP> without using the
<C/CE>.
PAGE 5
<MARK UP>
Mark Up calculates new prices for changes in yield. A List of basys changes is
stored in the Bond Trader which are used in performing this function when you
press <MARK UP>. You can also enter the number of basys points and <MARK
UP>.
First, try just <MARK UP> and the preset yield changes will compute up to 5
different prices, dollar price changes and dollar amounts for these changes.

“How did this happen?”, you ask. Well, the Setup List has up to five (5) preset
variables stored, one for each basys point level and yes, they are modifiable.
(Series 211 has only 1 stored variable)
You can also do a “Mark Down”. Press the <change sign> then the <Mark up>.
This will reverse the direction of the calculation and give a set of mark downs
with 5 basys point levels.
See the section on <SETUP/SPCL FNCT> for more information on setting this
value.
See Page 7 for another example
PAGE 6
Second, try <1> <MARK UP> and the YIELD will adjust by 1 (one) basys point.

“How did this happen?”, you ask again. Well, in that Setup List with the preset
variables there is a thing called a VARIANCE which computes what you entered
(1 in this case) and adds the variance to it. Since the variance in this example
was set to 4 basys points, the mark up is computed to 1 and 5 basys points, and
yes, you can change it too. Of course, if your VARIANCE is set to zero then only
the basys entered is shown.
See the section on <SETUP/SPCL FNCT> for more information on setting this
value.
PAGE 7
<CURRENT YIELD/DURATION/CONVEXITY>
Now, with an Issue on the screen, let’s compute the Current Yield, Duration and
Convexity. Once again hold onto your hats, because, we compute all these
things to both 1st Call, 2nd Call, and Maturity.

The Duration is displayed in YEARS (not periods).
PAGE 8
<TO AFTER TAX YIELD>
This Issue is a discounted bond with a Capital Gains Rate of 20.0% and an
Income Tax Rate of 0.0%. We compute the After Tax Yield. Once again if your
not holding on to your hats - do so because, we compute the After Tax Yield to
1st Call, 2nd Call, and Maturity.

This Bond Trader is so smart that it remembers the last Tax Rates you entered
even if you pulled the plug. ... You bet!
Let’s see if the Rates we put in at the factory are still there. Well if we goofed,
you can put them in now.
First, <DISPLAY> then, <INCOME TAX RATE> or <CAPITAL GAINS RATE>
You can use either key for the same results. Both RATES are always displayed
in the window.
Rates may be changed at any time by entering a rate and pressing either Tax
Rate key. These rates are stored in memory and will be retained until changed. A
zero rate must be entered for a 0.0% Tax Rate.
If you want a Capital Gains Rate of say, 39.5% just enter 39.5 and
press<CAPITAL GAINS RATE>. You can enter decimal value in the rate. Both
rates appear in the same window when either is changed.
PAGE 9
At any time the <TO AFTER TAX YIELD> can be pressed. Both rates appear in
the ATY WINDOW as a confirmation of the rates used.
<TO AFTER TAX YIELD>

The After Tax Yield can also be entered to compute the Before Tax Price and
Before Tax Yield. Enter the After Tax Yield and press <TO AFTER TAX YIELD>.
Both the Before Tax Price and Yield are computed simultaneously.
Enter a value and press <TO AFTER TAX YIELD>
PAGE 10
<SAVE ISSUE>
Let’s SAVE this Issue so we can use it later in some other calculations and
WINDOW features. Press <SAVE ISSUE>.

It found a place in memory and a WINDOW opened to tell us where it is in
memory. There are two hundred fifty (250) such places in the “411”, ninety-nine
(99) in the “311” and thirty (30) in the “211”, to store Issues. Each Issue can be
recalled by entering the Issue Location Number or displaying the entire List
...more on this later
This Issue was saved in Location 12 in Group 0. The Series 411 can store Issues
into ten (10) different groups. Each Group can store up to ninety-nine Issues (250
Issue maximum).
Let’s move on to some other items and come back and use this Saved Issue
later.
PAGE 11
<CLEAR ISSUE>
The <CLEAR ISSUE> does just that, it clears ALL the displayed data for the
Issue at the time the key is pressed.
The Settlement Date is not effected by this function. So if the Settlement Date
was reset to perhaps check an old ticket, the <CLEAR ISSUE> will NOT clear it.

Therefore another calculation using this Settlement Date can be performed. The
Settlement Date can be automatically reset to “today’s” Settlement Date by
<C/CE> <SETTLEMENT DATE>
“A COMMERCIAL TIME-OUT” --- Give your friends our NUMBER. It’s always on
the last line of the screen when you press <CLEAR ISSUE>
IF YOU HAVE ANY QUESTIONS, CONCERNS OR IDEAS REGARDING THE
BASYS POINT BOND TRADER JUST CALL US TOLL FREE AT
1-800-360-DAYS
PAGE 12
<CODE> entry and Code List
Many users of bond calculators are accustomed to a listing of Codes either on
the unit or in a manual (but where is my manual?). We stored the List in the
memory of the BASYS POINT 311 so you could easily DISPLAY CODES, so let’s
try it. Press <DISPLAY> <CODE> and see what happens. Voile!

Enter the Code Number and press <CODE>. Also, the ARROW <UP> or
<DOWN> (on the <+> and <-> calculator keys) will move you through the List,
highlight a selection and press <ENTER> (just above the <#9>). This entry will
then return you to the Main screen with the selected Code displayed along with
the proper Settlement Date for the selected Code.
Any Code can be entered at any time without the use of the List of Codes. Just
enter any Code Number and press <CODE>. The Code Number, Description and
Settlement Date will change appropriately
When a Code is changed from one number to another number, the data that may
have been present on the Main screen will be cleared. Of course, like so many
features of the Basys Point, you can modify this feature ... later.
PAGE 13
<SETTLEMENT DATE>
The Settlement Date can be entered at any time for an Issue. Certain rules must
be observed. The Settlement Date will change on Code changes, it must be later
than the Issue Date, and before any Call Date or Maturity Date. Just like the real
world. But if the entries do not follow these simple rules, the Basys Point will error
BEEP. We’re watching!
A WINDOW will appear advising that the Settlement Date has been changed.

In this example we changed the Code from “0” Muni/Corp to “1” Government. In
other word form T+3 to T+1 or next day settlement.
PAGE 14
<CODE> <1> and <32nds>
The Code List selection for Code 1 is Government Bonds Actual/Actual. Let’s
change Codes and see some new features.
Enter <1> <CODE>. Notice the heading and in particular, the Settlement Date. It
has been changed and a message appears (see <SETTLEMENT DATE> above)
One main difference in this Code from the MUNI/CORP Code 0 is the use of
32nds in Price/Yield calculations.

Let’s enter a Coupon and Maturity Date. Then enter a DOLLAR PRICE of 101.11
with the “.11” representing 11/32s. The <32nds> used after this entry will convert
the “.11” to the decimal equivalent and display both.
Enter 101.11
Press <32nds>
The entry of 101.11 for 101 and 11/32nds was converted into the decimal
equivalent. The entry is now shown with an apostrophe 101’11.000
PAGE 15
Entries may be made in any fractional amount of 32nds such as 101 and 12 1/8
32nds which is entered as 101.12125. Easier done than said.
The entry will appear as 101’12.125 = 101.37890625
The apostrophe before the number means 32nds.
When the <TO YIELD> is computed the entered DOLLAR PRICE is shown in
decimals as entered. Also, the number of 32nds (decimal portion of the Dollar
Price) is displayed to the right of the entered or computed Dollar Price.
A picture is still worth a thousand words! And another one of those “hold on to
your hat” items. The VALUE of 1/32 is also computed and displayed..... Not bad!

<DISPLAY> <32NDS> will convert a decimal number back into a 32nds format,
i.e. 101.734023 <DISPLAY> <32NDS> will result in 101’23.5
Enter any decimal value and Press <DISPLAY> <32NDS>.
If a Yield is entered and the <TO PRICE> is computed, the resulting DOLLAR
PRICE is displayed and automatically converted to 32nds (to the right of the
Price).
You can also set the number of decimals in the displayed value of 32nds. See
the section on SETUP/SPCL FNCT.
PAGE 16
<CODE 6> STEPPED COUPON BONDS
(early software versions allowed only one call)
Units with Series 411 Ver. 2.07 or higher can use two calls
Let’s run the following example for the Series 411.
Enter <6> <CODE>
You must enter the Conversion Date and the Conversion Rate on the <ENTER>.
Call details (1st or 2nd) are entered in the normal manner. When Code 6 is
selected, a message appears explaining the entry method.
Press <ENTER> and a window opens for entry of the 2nd Coupon (or
Conversion Rate) and the Conversion Date. Enter each item and press

<ENTER>. Changes to either of these two items can be made. First press
<ENTER> to open the window and then make the changes.
After data is entered in this window, the Main Screen will show a line with the
Conversion Rate as the “2nd COUPON”. The line with CONVERT shows the
Conversion Date.
The next page has a sample of a completed Code 6 issue.
PAGE 17
Code 6 allows for the calculation of two CALLs between the Settlement Date and
the Maturity Date. Either CALL can, therefor, be on, before or after the
Conversion Date.
This example has a Call on the Conversion Date. It is also priced lowest to the
1st Call.

The use of <ENTER> for the Conversion detail can be performed at any
time prior to the calculation of Price or Yield.
PAGE 18
<SAVE ISSUE> & <RECALL ISSUE>
Issue are Saved in “places” in the memory of the Basys Point and will remain
Saved until they are cleared or replaced with a new Issue. This memory is non-
volatile --- that means Issues Stored will not be erased by loss of power or
unplugging the unit. There are two hundred fifty (250) such places in the “411”,
ninety-nine (99) in the “311” and thirty (30) in the “211”. We saved an Issue
earlier on page 11
The Series 411 allows for Issues to be Stored in ten (10) different Groups. Each
Group can store up to ninety-nine (99) Issues (maximum for all Groups is 250