PV of "Full Price"

CFA Level I
#1

Hi All, Is it possible to use the BA II plus calculator to compute the “full price” of a bond, when purchased between coupon periods? CFA 1, Vol 5 (FI), Reading 65, page 500: “Computing the Full Price”. I used all kinds of “tricks” but I couldn’t figure anything out. I can’t imagine how time consuming it will be if a question like practice question 7 (page 501 of FI) drops-1.5 munites for calculating 10 streams of pvs and adding them all up! thanks! koba

#2

that wouldnt be on the exam

#3

thanks!

#4

yes it is, the calculator has a bond function in teh bond function you will get price and accrued interest… now all you gota do is check the calculators manual to see if by price they meen dirty or clean… or you can do it by testing…

#5

gulfcfa Wrote: ------------------------------------------------------- > yes it is, the calculator has a bond function > > in teh bond function you will get price and > accrued interest… > > now all you gota do is check the calculators > manual to see if by price they meen dirty or > clean… > > or you can do it by testing… I owe you big time for this tip! I just realized there are many more things I can do with my calculator than just PV-NPV… (Though I am kind of certain they will not give any calculation intensive question which will need too much time if you don’t use your calculator functions)

#6

Yeh, download the manual online if you dont have it it can also do amazing things with variance and corrolation

#7

thanks for the information!