How to use TI BA II+ to price a bond

Discussion in 'Today's YouTube' started by David Harper, CFA, FRM, CIPM, Jul 2, 2012.

  1. What is the (model) price of a 10-year $1,000 face value bond with a coupon rate of 4.0% that pays annually, if the yield is 6.0%?



    Follow-up question: should we expect this bond to trade at $851.23?
    • Like Like x 1
  2. Aleksander Hansen Well-Known Member

    Good stuff, David...
    I like the concept of putting certain things out there like this. Helpful to the general [slightly nerdy subset of] the public, as well as a good way to get the word out about BT.

    There has been a calculator debate going on on the forum and I think doing something similar [not necessarily on YouTube but] as part of specific practice questions would be very helpful and illustrative for a lot of people. That is, a video solving certain practice questions from each section that frequently occur on the exam.

    That being said, I would like to see the same for HP calculators. I did some serious research when deciding what calculator to buy half a year ago, and in terms of value, functions and ease-of-use I felt that the HP 10bII + was by far the best out there. I always favored TI when doing more hard-core math and physics, however, in the financial world I feel TI is like a Microsoft tablet and HP is like an iPad. TI had been sleeping at the wheel here it would seem - or maybe they are just focusing more on the scientific calculation side considering that makes up a larger share of the market [No source to back this up, just my estimate so don't take my word for it].
    • Like Like x 1

Share This Page