How many decimal places should we have the calc set to?
I put mine on 4.
Mine is set to 6, but I think you should be good with 4. It’s just my preference. The only area that the decimal place setting could really screw you is in a swap calculation. The CFA books typically round the swap calcs to 4 places. Depending on the notional value of the swap, if the calculated rate is just slightly off due to rounding it could significantly affect your answer. Would you rather be overdressed or underdressed for an event? I’ll take overdressed all day.
BTW, you should always be storing your values for your next calcs in the calc memory, so decimal places shouldn’t really matter.
I am doing FRA’s right now and I can’t match up due to rounding… Thanks Guys!
homie Wrote: ------------------------------------------------------- > BTW, you should always be storing your values for > your next calcs in the calc memory, so decimal > places shouldn’t really matter. How do you do that on a BAII Plus?
lol, same question!
saving in memory is a must do for larger calculations. but you can get them mixed up and forget which number is stored where. just hit “sto” “number 1-9” to recall, hit “rcl” corresponding “number 1-9” it helps to get in a groove and constantly use the same numbers for calcs… for instance, if I’m doing a bond problem for 4 periods, then each number corresponds to a period. for dividends i’ll store 1.1 in 1, 1.1 squared in 2, 1.1 cubed in 3. then take the dividends and divide by rcl 1 and then store the answer in 1, divide dividends by rcl 2 and store in 2, etc… and then I just add up rcl 1,2,3…
beingthatguy Wrote: ------------------------------------------------------- > I am doing FRA’s right now and I can’t match up > due to rounding… > > Thanks Guys! Having the same problem. I have my calc set to display 4 decimals but for some reason when it does the calculations it carries over additional decimals. Does anyone know how to adjust this? e.g. if I enter (10,016/9867.33) * 1,000 the calc displays 1,015.0669… if it were doing hard cuts at 4 decimals it should display 1015.10…