consider a zero coupon bond, 1 year, yield to maturity is 10%, face value 100. then it’s price shall be 100/1.1 = 90.90909. Now I’m trying to calculate it by BA II Plus calculator. I entered as: SDT = 1-01-2001; CPN=0%; RDT=12-31-2001; RV=100; 360; 2/Y; YLD=10% => PRI = 90.72754. if i change to 360; 1/Y => PRI = 90.93205; if i change to ACT; 2/Y => PRI = 90.72740; if i change to ACT; 1/Y => PRI = 90.93174; no matter I try, could not get the 90.90909 number, why?
Don’t know if I missed something but isn’t it done as follows: FV=100 I/Y=10 N=1 Cpt PV=90.9090 Are you sure you an BA II Plus? or did I miss something somewhere.
don’t need bond worksheet for this level. perhaps later. try do it as jaffels does
one suggestion…if you changed the dates to reflect 360 days??? its just seems that you have 360, then the dates are for 365 i’m not sure though. have never used this function
Thanks Jaffels and nicob. Yeah Jaffels, I’m using BA II Plus, Texas Instruments. I could use Cashflow worksheet to achieve that, but could not get it by Bond Datasheet. Hi nicob, no I could not acheive 90.9090 by tuning to 360 days. All & all, when should I use “Bond” worksheet in CFA exam? Should I always use Cashflow worksheet instead? many thanks!
I have no idea. I only ever use the TVM functions. That has worked fine so far. Perhaps someone else can help you
put the start date back 1 day!!
Thx! now i understand, shall use: SDT = 1-01-2001; CPN=0%; RDT= 1-01-2002; RV=100; ACT; 1/Y; YLD=10% then it’ll get 90.90909…