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HP is aware of the recent vulnerabilities commonly referred to as "Spectre" and "Meltdown". HP has published a security bulletin with patches for these issues and a list of impacted systems. We will continue to update the bulletin as more information becomes available and encourage customers to check the bulletin frequently.

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## HP 17Bii, 17Bii+, and 19Bii Calculators - Using the Band of Investment Analysis

Description
Discount rates are sometimes estimated using the weighted average of the return on the equity investment and the mortgage constant. The mortgage constant is the sum of the return on the mortgage amount and the return of the mortgage principal. This approach to calculating the discount rate is called band of investment analysis. The following equation calculates the discount rate using the band of investment approach.
NOTE: This equation assumes the mortgage requires monthly payments.
Using the band of investment analysis
To calculate the band of investment analysis:
1. Enter the BAND.INV equation into the Solver as follows:
BAND.INV:1÷USPV(I%÷12:
#YRSx12)x12xLTV%÷100+(1
-LTV%÷100)xEQ%÷100=DISC
2. Verify the equation:
• For the HP 17bii and 17bii+, press EXIT, EXIT, YES (to save), then CALC
• For the HP 19bii, press CALC
3. Store the following variables:
• Annual mortgage interest rate as a percentage in I%
• Mortgage amortization term in years in #YRS
• Loan-to-value ratio as a percentage in LTV%
• Equity return rate as a percentage in EQ%
4. Press DISC to calculate the discount rate.
Example on how to use the band of investment analysis
Use the band of investment analysis to calculate the discount rate for a property financed with a loan for 70 percent of the value at 10 percent interest with monthly payments for 20 years. The estimated market return on equity is 18 percent.
NOTE: To see the answer to 6 decimal places press DISP, FIX, 6, then INPUT
 Keys Display Description Press 10, then I% I%=10.00 Enter APR Press 20, then #YRS #YRS=20.00 Enter loan term Press 70, then LTV% LTV%=70.00 Enter LTV (loan to value) ratio Press 18, then EQ% EQ%=18.00 Enter equity return rate Pres DISC DISC=0.135062 (see note) Solve discount rate

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