$1000 par bond 4% semi-annual coupon 10 Years to Maturity 6% yield find out the price. Okay so when I use the TVM keys, I get $851.23 which is the correct answer. However, when I try to use the bond worksheet, I am getting $583.43! Can any of you please check the same? Many thanks in advance.
$851.23 is the correct answer.
On the bond sheet you were incorrectly entering the coupon as 4 instead of 40…enter 40 and you’ll get the right answer (same as TVM above) - first CFA question since passing L1 in Dec 2007! - study to commence january 1, 2009
n the bond work sheet you usually enter the full annual bond coupon. so 2nd bond SDT=1.0100 (1-01-2000) CPN=8 (Annual coupon) RDT=1.0110 (1-01-2010) RV=100 ACT 2/Y YLD=12 (Assuming 6% is the semiannual yield) CPT PRI=77.06 (per 100 price) – so 770.60 which is exactly the same number I get when I do the TVM calculation FV=1000, I/Y=6 N=20 PMT=40 CPT PV = 770.60
mkgref Wrote: ------------------------------------------------------- > On the bond sheet you were incorrectly entering > the coupon as 4 instead of 40…enter 40 and > you’ll get the right answer (same as TVM above) > > - first CFA question since passing L1 in Dec > 2007! > - study to commence january 1, 2009 Welcome back sir! Lets kill L2 this June. 
@CP, 770 is incorrect. the correct answer is 851.23 and mkgref is correct. Use RV = 1000, YLD = 6 and CPN = 40 to get the correct answer.
.
2nd 9 SDT 12.3100 CPN 4 RDT 12.3110 RV 100 ACT 2/Y YLD 6 PRI=85.1225 that would be 851.23 in $ terms