Calculator Financial Functions in L2 readings

CFA Level II
#1

I am slowly working my way through FRA and equity at the moment, I dusted down my trusty BAII in preparation, but so far have not had cause to use any of the special functions (NPV, CF, worksheets etc.). Obviously L1 had specific topics like TVM which needed these, but at L2 i haven’t spotted any - most of the quantitative methods is just econometrics.

Where will i need to re-learn how to operate the calculator? Or are these types of operation not required? Does it come up in Fixed Income?

I don’t think i’m going to spend long on corporate finance anyway.

#2

NPV, CF are pretty much everywhere in FRA, especially for the operating lease payments.

#3

haha you can tell i was concentrating!

#4

I cannot remember, except for leases, where calculating NPV is required anywhere else in FRA?

#5

I think there was a BB using NPV for pension accounting, showing the change in PBO if the pension pays based on % of ending salary x years of employment. But I have not seen that anywhere in the EOC (from what I remember).

#6

I saw that in cfa mocks also

#7

You’ll use NPV and IRR in Corporate Finance as well.

#8

Cash flow NPV comes into play quite a bit in the various equity valuation methods as well.