Need Help with BA II Plus Pro. Plz

CFA Level I Fixed Income
#1

PMT = 100 FV = 1,000 N = 5 PV = 1,000 − 72 = 928 compute I = ?

everytime i try and compute I/Y on my calculator i get “Error 5” what gives??? i’m putting in everything correctly any help plz on how to fix this?

#2

PV and FV should have different signs.

#3

+1

Read your calculator manual. It will seriously help a lot. Especially things like the cash flow worksheet, TVM, and data/stats functions.

#4

As others noted, you are getting the error because you aren’t using - and + signs as needed. It helps if you think of present value as an outflow (initial investment). Payments and future value are typically considered inflows (+).

So in your above example, try…

PMT = 100 FV = 1,000 N = 5 PV = 1,000 − 72 = -928 compute I = ?

Also, you may want to make sure your PY/CY is setup correctly as that can cause a different value.

#5

The detail to recall about the n, i, PMT, PV, and FV keys is that they are used to solve _ cash flow _ problems. Therefore, the signs on PMT, PV, and FV are important; you have to distinguish between cash inflows (positive sign) and cash outflows (negative sign).

I encourage my candidates to pick one viewpoint – borrower vs. lender, account/investment vs. account owner/investor, whatever – and _ always to adopt that viewpoint _; if you always do these problems the same way, you’re far less likely to make a mistake.

Here, if you take the viewpoint of the investor, then PV is negative (the investor pays the cash for the investment), PMT is likely positive (that’s a payment back to the investor), and FV is positive (that’s also a payment back to the investor). If you take the viewpoint of the investment, then PV is positive (the initial investment is received), PMT is likely negative (the investment makes payments to the investor), and FV is negative (the investment makes a final payment to the investor).

#6

Here are a series of videos I’ve put together that cover the basics of the BA2+ - there are 4 of them, and run about an hour total. I put them together for my undergrad and masters principles classes. They cover

  1. Settings http://www.screencast.com/t/UOFpQ1BUNY

  2. Solving Lump Sum problemems http://www.screencast.com/t/l4N3yeZAo

  3. Solving Annuity Problems http://www.screencast.com/t/b0tHGClO

  4. Using the Cash Flow Register (problems with Irregular cash flows, NPV, and IRR):

http://www.screencast.com/t/gDwMdHufGpt