Nope. You gotta do it the long, painful way.
Lo siento, mijo.
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Prediction? Pain.
I wouldn’t even bother using the TVM functions. Just hack at it using first principles:
1- year spot is 5% (no math required)
2- year spot
100 = 6/1.05 + 106/(1 + 2 yr spot)^2
algebra happens here
2 yr spot = 6.03%
3- year spot
100 = 7/1.05 + 7/(1.0603^2)+ 107/(1 + 3 yr spot)^3
some more algebra happens here
3 yr spot = 7.09%
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I like the plan.
On the BAII:
P/Y=C/Y=1
2ND CLR TVM
2 N FV 106 PV -94.28571 CPT I 6.03031
-94.228571 = 100 - 6/1.05
I think it’s more work than just doing it from first principles.
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From your examples, I was able to create a hybrid of first principles and BAII Plus calculation. Your work is excelente.
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And PMT = 0, correct?
Yup.
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