YIELDSCREEN

This function is used as an interactive bond yield calculator.

The following are a few examples of how YIELDSCREEN can be used:

• If something looks strange about the results, check the data items at the top, or press F8 to view the cash flows being used for the calculation. You can change the data on the screen. For example, the accrued income amount may appear inaccurate. You may notice that the DTDFL is coded as a short first coupon instead of long. You can change the DTDFL code to LX, then hit F7 to recalculate to see if the accrual amount is corrected. These changes will not be written back to your database, so you can do analysis without changing your security records. If you discover that data is missing or incorrect, add it through your standard procedure (e.g. EDITSEC) or using the save option if you are authorized
• If you have a yield and want to solve for price, enter your yield and set the PRICE field to 0. Pressing F7, the system calculate a price from yield
• Fixed income traders may use this function for real-time calculation of accrued interest for various settlement dates, and also for the display of the dollar value of a basis point of yield, and the change in yield corresponding to 1/32 change in price. To do this, you can change the settlement date, price or yield and hit F7 to recalculate
• You also have the ability to enter a particular face amount for the calculation of accrued interest and cash flows. To use this feature, press the TAB and arrow keys until you are positioned where it says "Based on 1000M Face". Change the "1000" to the desired number of bonds; for example, if you want accruals on 500,000 par amount, enter 500. Press F7 to recalculate using the new face amount. Cash flows on the supporting screen will also use your new face amount

This can help you in verifying accrued interest amounts prior to a trade.