Hello!
Could you explain to me how to correctly calculate PV of a bond valuing at par in the financial calculator?
I have googled, but it seems to me that I do the same, however, the result is incorrect.
FV=100, YTM = 2%, Coupon= 2% annual, maturity = 7 years.
I do the following:
7 N
2 I/Y
2 PMT
100 +/- FV
CPT PV
and I get 74.112 instead of 100
The full task is:
At the height of the COVID pandemic, the government of Greece issued a 2 percent annual coupon bond maturing in seven years. If the observed YTM at issuance was 2.00 percent, what was the issuance price (PV) per EUR100 of principal?
Thank you in advance!
I currently study using CFA Institute materials provided via purchase. However, there is no explanation how to use a calculator. Do Schweser books have it?
How is it the best to combine both providers (CFA Institute resources (LMS) and Schweser’s books)?
The sign on FV should be identical to the sign on PMT. You should also check P/Y and C/Y (2ND I/Y), but I believe they are already set to 1.
2ND CLR TVM
P/Y=C/Y=1
7 N 2 I 2 PMT 100 FV CPT PV -100
https://education.ti.com/download/en/ed-tech/ADF11FB65B284B6195B0A7E9502784BA/5DC3E70F3C8040E499D704B583646E1D/BA_II_PLUS_EN.pdf
Link to BAII user manual in about 5 different languages. I thoroughly encourage you to read in whatever language you wish and work the examples!!! 
1 Like
Thank you very much!!! I will go through the manual.