Hi all,
Could anyone explain me how to solve some CFA exercises on BA II plus?
To start, could you please explain how we can raise to a power of, say, 89/180 some value (e.g. 1.029)?
Is that possible to perform on BA II plus?
Let’s recall there are CFA exercises where we need to calculate a full price (PVfull) of a bond given PMT, YMT, etc.
Cheers!
So, you want to raise 1.029 to the power of 89/190 with your BA II?
The key strokes are
1.029
Yx
(
89
/
180
)
=
Result: 1.0142
Just as an FYI, I have found the BOND worksheet on the BA II Plus to be rgeat for these valuation questions. Don’t let this get in the way of your understanding the concepts though of course!
http://www.tvmcalcs.com/index.php/calculators/apps/baiiplus_professional_bond_valuation
Besides mastering CF button and the TVM row on your calculator, your best friend is STO and RCL. Let’s say you want to calculate 1.029^(80/234 + …something complicated here). Just STO the result of your complicated formula. And then punch: 1.029 , Yx, RCL, [number where result stored]. Best way (only way?) to do quant and valuations.
Take the time to go through the manual and work the examples. It shouldn’t take too long and will give you a very good idea of all the calculator’s functionality.