How do you use bond function on BA II Plus?
How do you use bond function on BA II Plus?
The bond worksheet on a BAII Plus calculator can compute the bond price, the yield to maturity or call, and accrued interest. To access the bond worksheet, press [2nd] [BOND]. Use the [↓] or [↑] keys to access bond variables.
What is error 7 on BA II Plus?
The BA II PLUS or the BA II PLUS PROFESSIONAL will produce an Error 7 when an iteration limit has been exceeded: TVM worksheet: the calculator computed I/Y for a very complex problem involving multiple iterations. Bond worksheet: the calculator computed YLD for a very complex problem.
What is the purchase price of the bond?
Definition: Bond price is the present discounted value of future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity. To calculate the bond price, one has to simply discount the known future cash flows.
How are bond years calculated?
To complete the calculation, an investor needs to take the present value of each cash flow, divide it by the total present value of all the bond’s cash flows and then multiply the result by the time to maturity in years.
What is P Y and C Y?
P/Y stands for payments per year, and C/Y for compounding periods per year. That is, 12 payments per year and 12 compounding periods per year.
What is P Y on BA II Plus?
The BA II Plus defaults to 12 payments per year (P/Y) and 12 compounding periods per year (C/Y). You can change one or both of the settings to any number.
Why is my BA II Plus giving me wrong answers?
If the BA II PLUS or BA II PLUS PROFESSIONAL calculator is returning an incorrect answer when calculating Time Value of Money, it could be caused by incorrect settings on the calculator or incorrect input from the user. To clear out all Time Value of Money memory variables, press [2nd] [FV].
