What's new

YouTube TI BA II+: How to compute bond price or yield when settlement date falls on coupon date (TIBA2-03)

Nicole Seaman

Chief Admin Officer
Staff member
Thread starter #1
There are two ways to price a bond with the calculator: using the built-in bond worksheet, or using the time value of money (TVM) functions (i.e., N, I/Y, PV, PMT, and FV). This video shows you how to use the set of TVM to quickly find the price or yield of a bond. Notice that the approach is: input four, solve for the fifth. Maybe the most important first step is to simply decide on the length of each period, is it one year, six months (aka, semi-annual), quarterly, or daily? Then remember your output will solve in the same "periodicity." In general, we want to keep the defaults of P/Y = C/Y = 1. Finally, realize that you are implicitly using discounted cash flow (DCF) here, so the bond's returned price is the full (aka, cash) price, not its flat price.

YT sub small.png

Don't have the Texas Instruments BA II Plus? Purchase one here:

purchase thumb button.jpg
Last edited: