# BA II Professional Bond Pricing

Is using the bond worksheet on the calculator more effective than attempting to memorize all of the formulas? Is modified duration ok to use given a bond without embedded options? How do you use the bond worksheet when not given dates etc?

Yes it is effective. When you’re not given dates, just invent a settlement and a redemption.

Do you use it for every question? I did it manually throughout the fixed income section, but am now thinking I should have looked at it prior to now. All you do is use the dec 31 99, and make up a date to cover as much of time as is required? Do you use the 360 day year?

What happens if the bond matures in say 224 days? Do you start figuring out the date 224 days from now?

newsuper Wrote: ------------------------------------------------------- > What happens if the bond matures in say 224 days? > Do you start figuring out the date 224 days from > now? Go to 2nd --> Date and press the down arrows, you’ll be able to calculate it then

Gordon Gekko CFA Wrote: ------------------------------------------------------- > Do you use it for every question? I did it > manually throughout the fixed income section, but > am now thinking I should have looked at it prior > to now. For most of the times I use the N, I/Y, PV, PMT and FV, but for questions on value at redemption, or settlement / redemption between 2 coupons, duration, prices (dirty, clean, interest accumulated) I use the bond function. Much easier. > All you do is use the dec 31 99, and make up a > date to cover as much of time as is required? Do > you use the 360 day year? Yes, I use a start point (the default is 12.3190 which is 12/31/1990 and I make up the redemption date, or input in the settlement/redemption date if given in the problem. As for the 360 days/year, it depends on what the problem asks for, you can set it to ACT, which is the “actually” 365 I believe.