Calculate the number of Periods (NPER) for a Corporate Bond

CFA Level I
#1

What is the Number of years (N) ?

Price:129.375
Yield: 2.710
Coupon: 4.200

#2

I get 29.

What did you get?

What did you input into your calculator?

#3

Thank you for the quick reply. Here are my inputs

PV = -129.375
FV= 100
I = 1.355
PMT= -2.1

N = 8.1 (wrong answer)

#4

Try PMT = +2.1.

If you buy the bond (negative PV), you receive the coupon; you don’t pay it.

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#5

This is a 30 year bond issued 3/25/20 with expiration on 03/25/2050. The first coupon was 9/25/20.

When I enter the following I get 28.39~

PV = 129.375
FV = 100 ( we don’t include the last coupon pmt (102.1) on the T.I Calculator, right?)
I = 1.355%
PMT = 2.1

N = 56.78 / 2 = 28.39

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#6

These inputs actually produce -8.1. Changing PMT to +2.1 will give you the correct answer!

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