Dec 142017
BON PRO will help you make money in bonds by obtaining the highest available yields while minimizing risk.
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BON PRO will help you make money in bonds by obtaining the highest available yields while minimizing risk.
File Name File Size Zip Size Zip Type
BONDPRO.000 40704 20419 deflated
BONDPRO.COM 37320 21543 deflated
BONDPRO.DOC 23049 7325 deflated
BONDPRO.HLP 5356 1995 deflated
BONDS 1035 544 deflated

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Contents of the BONDPRO.DOC file


BONDPRO User Manual

1.0 Introduction

2.0 Caution

3.0 Getting Started
3.1 DOS Familiarization
3.2 Distribution Disk
3.3 Create Working Copy

4.0 Exploring BONDPRO
4.1 Bonds
4.2 Swaps
4.3 Defaults
4.4 Configure
4.5 Order Form

5.0 Operation
5.1 Bonds
5.2 Swaps
5.3 Output

6.0 Program Limits

7.0 Limited Warranty

8.0 Order Information

Appendix A : Example Records

Copyright 1986, Techserve, Inc. All rights reserved.


1.0 Introduction

The key to making money in bonds is obtaining the
highest available yields while minimizing risk.
Often the yield on a portfolio of bonds may be
improved by swapping lower yielding bonds for higher
yielding ones. Factors which must be considered,
however, include transaction costs, taxes, redemption
calls as well as differential default risk. BONDPRO
makes a comparison between bonds to determine the
present value of a swap, taking into account these
factors. BONDPRO handles records for multiple bonds,
facilitating easy comparison to find profitable

2.0 Caution

Although we think BONDPRO will be a useful tool for
many investors, and we do our best to minimize pro-
gram errors, we can't underwrite your investment risk.
We caution you therefore to satisfy yourself as to
the reasonableness of BONDPRO results before relying
upon them to make investment decisions. We also
recommend that BONDPRO not be relied upon exclu-
sively, as sometimes underlying factors may adversely
affect the value of a bond.

3.0 Getting Started

We feel that the best way to get started with a
program is to put the disk in the drive and start
"exploring". Some preliminaries are required first,

3.1 DOS Familiarization

If you are a beginning PC user, PLEASE read your Disk
Operating System manual to become familiar with some
of the more commonly used commands such as "FORMAT",
"PRINT", "COPY", "DIR", etc. Put your DOS disk in
drive "A" of your machine and try out the commands to
see how they work. Use the "DIR" command to see what
files are on the DOS disk. Note that the command
files such as "FORMAT.COM" end in "COM". In general,
files ending in "COM" or "EXE" are compiled programs
which may be loaded into memory and run merely by
typing the file's name at the DOS ">" prompt.



3.2 Distribution Disk

Insert the BONDPRO distribution disk in a drive and
use the "DIR" command to view its directory. The
following files should be included:

BONDPRO.COM - Master BONDPRO program file.
BONDPRO.000 - BONDPRO program overlay file.
BONDPRO.DOC - This user manual.
BONDPRO.HLP - Contains help messages.
BONDS - Contains bond records. Data for
several bonds are include for
demonstration purposes.

Confirm that the BONDPRO "COM" and "000" files have
the same date and time (within a couple minutes). If
not, please notify us so we may replace the disk.

3.3 Create Working Copy

Copy the above files to a working disk using DOS's
"COPY" command and place the distribution disk in a
safe storage location. If the working disk is a
fresh disk, format it with the "/S" option in order
to put DOS boot files on the disk (COMMAND.COM and
two hidden files). If you are using a hard disk, put
all the BONDPRO files in the same directory.

4.0 Exploring BONDPRO

To explore BONDPRO, put the working disk in a drive.
Change the default drive (and directory, if applic-
able) to that of the BONDPRO disk (e.g. if disk is in
drive "B" the DOS prompt should be "B>"). Type
"BONDPRO" (without quotes) and hit the "Enter" key.
BONDPRO will load and display the following menu:

B) Bonds

S) Swaps

D) Defaults

C) Configure

O) Order Form

N) New User

Q) Quit

> _



4.1 Bonds

Select the "Bonds" selection. You will be prompted
for a bond data file name. The default name is
"BONDS". Since this file is already on disk, hit
the "Enter" key to load. (If you instead type in
another name, a new stock data file will be created).

Once loading is complete, records in the "BONDS" file
will be displayed (example in Appendix A). Bonds
records are displayed in two formats (A & B) which
may be toggled between using the "Alt+D" command
(described below).

Note that available command keys are listed across
the top of the screen. Try the keys. Their
functions are as follows:

Esc - Return to main menu
Arws - Move editing cursor
PgUp - Pages backward thru records
PgDn - Pages foreward thru records
Home - Go to first record
End - Go to last record
Ins - Insert new record
Del - Delete record

"Alt" commands are executed by depressing the "Alt"
key and then the key corresponding to the capitalized
letter in the command. Available "Alt" command
functions are as follows:

Alt+S - Sort records by symbol
Alt+P - Print records. The default printer is
"LPT1" however another printer or disk file
name may be specified
Alt+L - Load another bond file
Alt+V - saVe file updates to disk.
Alt+D - Display format toggle. Bond records
have two display formats
Alt+H - Help messages displayed

Data may be entered into a record merely by moving
the cursor to the appropriate field and keying the
data. Note that bond current yield is automatically
computed when new price data is entered.

4.2 Swaps

Return to the main menu (use "Esc") and try the
"Swaps" selection. The "Swaps" module will be loaded
and two bond records will be displayed side by side.



BONDPRO's swap calculations treat the leftmost record
as the swap "sell" bond and the rightmost as the swap
"buy" bond.

Each bond record in the swap display contains three
types of data. The first consists of bond-specific
data which may be entered into bond records by
editing the "BONDS" file. The second data type
consists of swap-specific data which must be entered
from the swap screen. The last type of data (yields
and present values) is computed once all swap-
specific data has been entered.

Like for "Bonds", available Swap commands are indi-
cated on the top line of the Swap screen. Functions
are as follows:

Arws - Move the highlighted "edit" cell from
field to field.

PgUp/Dn - Loads records from "BONDS" into the swap
on the side of the highlighted edit
block. Move edit block to load other

Ctrl+Pg - Control key plus page keys load first and
last records into swap.

Alt+L - Loads a new bond file and loads the first
two records into the swap.

Alt+F - Finds bond record from bonds and loads it
into Swap.

Alt+C - Calculates the contents of the high-
lighted cell. Applicable to "Commis-
sion", "Accrued interest" and "Cap. Gains
Tax" cells only.

Alt+Y - Computes Yield to Return and other swap
values in the third and fourth data

Alt+V - saVes the bonds to file originally

Alt+P - Prints Swap. The default printer is
"LPT1" however another printer (LPT2 or
LPT3) or disk file (any name) may be



4.3 Defaults

"Escape" back to the main menu and try the "Defaults"
selection to obtain the following menu:

1) Cap. Gains Rate : 40.0%
2) C. G. Hold Requirement : 6.0
3) Per Bond Commission : 5.00
4) Max. Commission Rate : 1.00%
5) Transact. Min. Commis. : 34.00
6) Default Swap Quantity : 10
S) Save Parameters
H) Help

> _

These self-explanatory parameters are used in
calculating swap intermediate values, such as swap
commission and capital gains tax. Try changing
values to see the impact on a given swap.

The "Save" selection on the "Default" menu permits
changes to be saved. These changes will automatic-
ally be the new defaults when you restart the
program. The "Save" function will not work unless
your disk has a valid user identification and key
code. "Save" does not work on the demo version of

4.4 Configure

The "Configure" selection permits setting of certain
program and system related parameters. Selecting
"Configure" produces the following menu:

1) Color Setups
2) Printer Specs.
3) System Speed (Mhz) : 4.77
4) System Sound : On
5) Monochrome HiVideo : Off
6) User Identification
C) Copy Demo
S) Save Configs.

> _

These operate as follows:

Color Setup - Permits changing of display colors for
users with color displays.



4.4 Configure (cont'd)

Printer Specs. - Permits specifying printer charac-
teristics, including setup codes. If a printer
is not found "N/A" is displayed. "Text file"
characteristics are not applicable to BONDPRO.

System Speed - Used to adjust program delays and
sounds to the operating frequency of your system.

System Sound - Enables/Disables end of file beeps.

Monochrome HiVideo - When "On" sets all text in
intense mode for monochrome monitors.

User Identification (not on demo) - This permits
input of a new user identification, but requires a
valid matching key code for acceptance of new name.

"Copy Demo" copies demo version of BONDPRO to
disk drive you specify.

"Save" saves the value you've set so they are
automatically operative the next time BONDPRO is
used (not operative on demo versions).

4.5 Order Form

This facilitates the order of BONDPRO updates and
companion programs, STOCKPRO and PFROI. To avoid
copyright infringement, users who have obtained a
full function copy of BONDPRO from a source other
than TECHSERVE, Inc. should purchase a licensed copy
if they do not discard or erase it after brief trial

5.0 Operation

Once you've finished "exploring" BONDPRO, return
to the "Bonds" section to enter bond data.

Be sure to have a good source of bond data such as
Moody's or actual bond prospecti.



5.1 Bonds Operation

Use the "Alt+D" command to switch to display format
"B". This format is intended for entry of basic bond
data, while format "A" is intended for price updates.
Enter bond data in the "B" format as follows:

T - Bond taxable status (Y=yes, N=no)

Symbol - Ticker symbol

Description - Corporation issuing bond. Note that
this field is "hidden" until the
symbol field is entered.

$Int/Yr - Annual dollar interest payment on bond
("coupon rate")

Pmt Mos/Day - The months and day in which interest
payments are made. If payments are
made January 10 and July 11 then the
entry would be: 1,7/10.

Call #1 - The date of the first call on the
bond (if any) in a "mo/dy/yr" format.

Amount - The call price. For example if a
bond is being called at a 8% premium
over face value the call price would
be 108.00.

Call #2 - The date of second call, if any.

Amount - Price of second call.

Maturity - Maturity date.

Amount - Maturity price, usually 100.

Values entered are per unit values, with one bond
unit assumed to have a $100 face value per bond

Once basic bond data has been entered, you may switch
back to the "A" format (Alt+D) to enter current price
data. Note that price data may be entered in either
a decimal or fractional (e.g. 102 5/8) form. Typic-
ally the "Ask" price should be entered since most
bonds will be considered as swap "Buy" candidates.



5.2 Swap Operation

Return to the main menu and enter the "Swap" module.
Swap-specific data fields generally require data
entry for each bond in the swap. Non-applicable
fields for the "Buy" bond are automatically skipped
in moving the edit cell. Swap fields are as follows:

Qty - Number of bonds involved in swap.
Used to compute total swap NPV.
(Tax) Rate - Tax rate of person considering swap.
Purch. Date - Date the "Sell" bond was purchased.
Cost - Cost base of "Sell" bond.
Current Price- Bid price for "Sell" bond, Ask price
for "Buy" bond.
Commis - Commission to sell or buy bond as
appropriate. "Alt+C" command will
automatically compute using default
Accrued Int. - Interest accrued on bond since last
interest payment. "Alt+C" command
will automatically compute.
CGTax - Capital gains tax for "Sell" bond.
"Alt+C" automatically computes.
Discount Rate- This is the discount rate at which
the bond present value is computed.
This is intended to reflect the
issuing firm's cost of money, so as
to predict the most likely call. If
no entry is made, its default is the
bond's current yield.

The remaining swap fields are computed using the
"Alt+Y" (Yldcalc) command. Field contents are as

Call # P.V. - Present value of the bond assuming
it is called on the indicated call.
Call # Y.T.R.- Yield to redemption on indicated call.
Maturity P.V.- Present value of bond assuming it is
redeemed at maturity.
Maturity YTR - Yield to maturity.
F/C Yld to R.- The lowest yield to redemption.
Tax on Int. - The percentage reduction in yield
and Gains to redemption due to taxes.
Net Y.T.R. - Forecast yield to redemption, net
of taxes.
Swap NPV/Unit- Per bond swap net present value.
Total - Total swap net present value
(NPV/Unit x Qty).

The swap is a money-making proposition if the total
swap NPV is positive. Note that this NPV automatic-
ally factors in bond risk through the discount rate.



5.3 Output

Bond swap records may be output to either a printer
or disk text file using the "Alt+P" (Print) command
from the Swap screen. To output to a printer specify
LPT1, LPT2, or LPT3 as appropriate when prompted for
an output device. To output to a text file, specify
any other unused filename. This text file may be
subsequently edited using your text editing program
to incorporate it into a memo which may be sent to
clients. The text file feature is not operative on
the demo.

6.0 Program Limits

The number of bond records which can be contained in
any one bond file is dependent upon your system's
internal memory and disk capacity. If you approach
internal memory limits, a warning message will appear
on the screen. If you run out of disk space in try-
ing to save a file, BONDPRO will prompt you for an
alternate disk drive. In response you may insert a
fresh diskette or merely specify the current drive,
in which case BONDPRO will try to make room by
deleting the current file backup.

BONDPRO demo limits are as follows:

1) Record limit : approx. dozen recs/file.
2) Output to text files disabled.
3) Data files are limited to file named "BONDS".



7.0 Limited Warranty

BONDPRO software provided on diskettes purchased is
provided "as is". Purchasers should ascertain to
their own satisfaction that software produces accept-
able results and performs to expectations. If not
satisfied, purchasers may return diskette(s) and
manual(s) (if included) in original condition within
forty-five days of purchase for a full refund of pur-
chase price. Return for refund voids user license.
This warranty is in lieu of all others, express or

8.0 Order Information

BONDPRO's demo version may be freely copied for trial
use provided it is unaltered. A full function copy
of the latest version of BONDPRO, including a
lifetime license may be obtained for $20. Current
license-holders may obtain an update disk containing
the latest version of BONDPRO for $10.

To order, remit payment, including $2 shipping and
handling fee to :

Techserve, Inc.
P.O. Box 70056
Bellevue, WA 98007 (USA)

Prices are subject to change without prior notice.



Appendix A

Bond Swap Analysis : BONDS

08/21/86 Qty: 10 Sell: Bond aaa Buy: Bond bbbb
--------------------- ---------------------
Taxable (y/n) | Rate : Y 28.0% N 28.0%
Pmt. Mons/Day | $/Yr : 1,7/1 11.00 3,9/15 7.25
Call Date #1 | Amount : 01/02/88 102.00 / /
Call Date #2 | Amount : 01/02/89 101.00 / /
Maturity Date | Amount : 01/02/90 100.00 03/15/88 100.00

Purch. Date | Cost : 01/15/82 100.00
Current Price | Commis : 100.3750 98.7500
Accrued Int. | CGTax : 1.47 1.47

Discount Rate : 11.00% 0.00%
Call #1 P.V. | Y.T.R. : 103.56 12.45% 0.00 0.00%
Call #2 P.V. | Y.T.R. : 102.83 11.51% 0.00 0.00%
Maturity P.V. | Y.T.R. : 102.26 11.16% 114.50 9.51%

F/C Yld to Redemption : 11.16% 9.51%
Tax on Int. & Gains : 3.36% 0.09%
Net Yld to Redemption : 7.80% 9.42%

Swap NPV/Unit | Total : 2.21 22.06


Software Library Information:

This disk copy provided as a service of

The Public (Software) Library

Disks in the library are updated monthly.
For a copy of the latest monthly software library newsletter
and a list of the 800+ disks in the library, call or write

The Public (Software) Library
P.O.Box 35705, Rm. F
Houston, TX 77235-5705
(713) 721-6104

We are not the authors of this program.

Please direct shareware payments and specific questions about
this program to the author of the program, whose name appears
elsewhere in this documentation. If you have trouble getting
in touch with the author, we will do whatever we can to help
you with your questions.

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