May 14

How to use the BA II+ to price a bond and solve for yield - 8 min screencast

by David Harper, CFA, FRM, CIPM

FRM |

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Here is a quick illustration of how to use the TI BA II+ to get the price or yield (YTM) of a plain-vanilla (i.e., no embedded derivatives) bond. Just keep in mind:

  • You need to input four values and solve for the 5th
  • Be consistent with the period. Unless otherwise specified, a semi-annual assumption is typical (six month periods).
  • If you are computing yield (YTM), remember at the end to convert the answer to its bond-equivalent yield. That is, multiply by two.

Here is the screencast:

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