Financial Calculations on the Texas Instruments BAII Plus PDF

Bond Worksheet on BAII Plus Calculator

The bond worksheet on a BAII Plus calculator can compute the bond price the yield to maturity or call

Review of Calculator Functions For The Texas Instruments BA II Plus

The bond amortization components can be found using the calculator's amortization worksheet in much the same way they are found for loan amortization. A bond

BA II PLUS™ PROFESSIONAL Calculator

ii. Important Information. Texas Instruments makes no warranty either express or implied

BA II Plus™ - Quick Guide to Settings and Concepts

This Quick Guide is a supplement to the BA II Plus Guidebook. prompted worksheet and return to standard-calculator mode. ... http://www.ti.com/calc.

Financial Calculations on the Texas Instruments BAII Plus

BA II PLUS™ Calculator

Texas Instruments makes no warranty either express or implied

Using the HP 10B and TI BA II Plus Financial Calculators

The bonds make annual payments. If one of these bonds currently sells for $1145.68

Calculatrices BA II PLUS™ / BAII PLUS™ PROFESSIONAL

responsabilité unique et exclusive de Texas Instruments quelle que soit la modifiée d'une obligation avec la calculatrice BA II PLUS™. PROFESSIONAL .

Review of Calculator Functions for the Texas Instruments BA-35

The BA II PLUS has functions that find annuity values when the interest period and the payment period do not coincide. The BA-35 Solar calculator does not have

Bond Worksheet on BAII Plus Calculator - George Brown College

The bond worksheet on a BAII Plus calculator can compute the bond price the yield to maturity or call and accrued interest To access the bond worksheet press [2nd] [BOND] Use the [?] or [?] keys to access bond variables To reset the Bond worksheet to default values press [2nd] [CLR WORK]

HOW TO USE YOUR TI BA II P CALCULATOR - Boston University

This document is designed to provide you with (1) the basics of how your TI BA II Plus financial calculator operates and (2) the typical keystrokes that will be required on the CFA examination A similar guide as published by Texas Instruments is available for download from www ti com/calc/baiiplus

Searches related to texas instruments ba ii plus bond function PDF

TI BA II Plus Calculator Functions 1 Fixed Income Investments TI BA II Plus®Calculator Functions © Kaplan Inc Advanced Calculator Functions Agenda Mean variance and standard deviation Covariance and correlation NPV and IRR Time value of money Interest rate conversions 2 2 © Kaplan Inc Advanced Calculator Functions Clearing the Memory

What are the functions of the TI BA II Plus calculator?

TI BA II Plus Calculator Functions 1 Fixed Income Investments TI BA II Plus®Calculator Functions © Kaplan, Inc. Advanced Calculator Functions Agenda ?Mean, variance, and standard deviation ?Covariance and correlation ?NPV and IRR ?Time value of money ?Interest rate conversions 2 2 © Kaplan, Inc. Advanced Calculator Functions Clearing the Memory

How do I use the bond worksheet on a BaII Plus calculator?

The bond worksheet on a BAII Plus calculator can compute the bond price, the yield to maturity or call, and accrued interest. To access the bond worksheet, press [2nd] [BOND]. Use the [?] or [?] keys to access bond variables. To reset the Bond worksheet to default values, press [2nd] [CLR WORK].

Does Texas Instruments make a warranty?

Page 1 BA II PLUS™ Calculator... Important Information Texas Instruments makes no warranty, either express or implied, including but not limited to any implied warranties of merchantability and fitness for a particular purpose, regarding any programs or book materials and makes such materials available solely on an "as-is" basis.

How do I enter a data series Into my BaII plus?

To enter a data series into your BAII Plus, press [2nd] ?[DATA]. Notice that you can enter both X and Y coordinates (you can actually perform a simple linear regression on your calculator!). If you just have one data series (X), you will simply press the down arrow through the prompts for Y data values.

© Copyright 2002, Alan Marshall1

Financial Calculations on theFinancial Calculations on the

Texas Instruments BAII Plus

This is a first draft, and may

contain errors. Feedback is appreciated

© Copyright 2002, Alan Marshall2

Compounding AssumptionsCompounding Assumptions

The TI BAII Plus has built-in preset

assumptions about compounding and payment frequencies. Compounding and Payment frequenciesare controlled with the [P/Y] key

© Copyright 2002, Alan Marshall3

Compounding AssumptionsCompounding Assumptions

Press the [P/Y] key ([2nd][I/Y])

Unless the settings have been changed,

you will see the default, preset payment frequency: P/Y = 12.00 - 12 payments/year Using the down arrow [^] or up arrow [v] willscroll you to the next window, the number of times per year the interest is compounded: C/Y = 12.00 - 12 times/year

© Copyright 2002, Alan Marshall4

Compounding AssumptionsCompounding Assumptions

For the first part of the Time Value of

Money slides, we are dealing with annual

compounding and annual payments, so these values need to be changed: [P/Y] = 1 [ENTER] [C/Y] will automatically be changed to 1 [^] [C/Y] Display = 1 To return to the calculator mode press[QUIT] or [2nd][CPT]

© Copyright 2002, Alan Marshall5

An AlternativeAn Alternative

One way to make the BAII Plus work very

much like the Sharp EL-733A is to set the [P/Y] and [C/Y] to 1 and leave it there all the time.

If you do this, some of the directions thatfollow will not work if the values of [P/Y] and[C/Y] are changed

© Copyright 2002, Alan Marshall6

ClearingClearing

It is also very important to clear the Time

Value worksheet before doing a new set of

calculations [CLR][TVM] 2

© Copyright 2002, Alan Marshall7

A Word on RoundingA Word on Rounding

I set my BA II Plus to an artificially large number of decimals - usually 7 - which will rarely all be displayed.

The BA II Plus will display the answer roundedcorrectly to the number of decimals available oras set by you, whichever is less.

In these notes, 1/7 = 0.142857... may be writtenas 0.1428..., where the "..." simply means that I have stopped writing down the decimals, but I have not rounded.

© Copyright 2002, Alan Marshall8

Future ValuesFuture Values

5n 05

© Copyright 2002, Alan Marshall9

On the TI BAII PlusOn the TI BAII Plus

44651.06 [PV]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FV

k,n , simply use PV = 1

1 [PV]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -1.338225...

© Copyright 2002, Alan Marshall10

Present ValuesPresent Values

A contract that promised to pay you v59,753.19 in

5 years would be worth today, at 6% interest:

55%,650

© Copyright 2002, Alan Marshall11

On the TI BAII PlusOn the TI BAII Plus

59753.19 [FV]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PV

k,n , simply use FV = 1

1 [FV]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -0.747258...

© Copyright 2002, Alan Marshall12

PerpetuitiesPerpetuities

Perpetuities, growing perpetuities and

growing finite annuities must be done using the formulae as financial calculators do not have special functions for these cash flows 3

© Copyright 2002, Alan Marshall13

PV of Annuity ExamplePV of Annuity Example

)k1(1600,10$PV 5n 0

© Copyright 2002, Alan Marshall14

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -4.21236...

© Copyright 2002, Alan Marshall15

FV of Annuity ExampleFV of Annuity Example

1)k1(600,10$FV

5n 5

© Copyright 2002, Alan Marshall16

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -5.63709...

© Copyright 2002, Alan Marshall17

Annuities DueAnnuities Due

To access the toggle that switches the

annuity payments between regular (END) and due (BGN) you use the [BGN] key ([2nd][PMT])

To toggle between the BGN and ENDsetting, use [SET] ([2nd][ENTER]) and[QUIT] to return to the calculator mode

If set for annuities due, you will see BGN inthe display

© Copyright 2002, Alan Marshall18

PV of an Annuity DuePV of an Annuity Due

5n 0 4

© Copyright 2002, Alan Marshall19

On the TI BAII PlusOn the TI BAII Plus

[BGN][SET] to set to BGN

10,000 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -44,651.06

To get the PVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][PV] Display = -4.4651056...

© Copyright 2002, Alan Marshall20

FV of an Annuity DueFV of an Annuity Due

k1FVPMTk1k1)k1(PMTDueFVA n,kn k,n

© Copyright 2002, Alan Marshall21

On the TI BAII PlusOn the TI BAII Plus

[BGN][SET] to set to BGN

10,000 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -59,753.19

To get the FVA

k,n , simply use PMT = 1

1 [PMT]; 6 [I/Y]; 5 [N]

[CPT][FV] Display = -5.9753185...

© Copyright 2002, Alan Marshall22

Example, Uneven Cash FlowsExample, Uneven Cash Flows

Valued at 6%

0 12345

0 $20,000 $15,000 $25,000 $30,000 $10,000

$18,867.92 $84,443.74 $7,472.58$13,349.95 $20,990.48 $23,762.81

On the TI BAII PlusOn the TI BAII Plus

We use the [CF] key,

Initially, we see the Display: Cf0 = 0.00

The down arrow [v] and up arrow [^] allow

us to scroll through the displays Each Cnn is followed by Fnn to allow theuser to enter multiple occurrences of avalue

On the TI BAII PlusOn the TI BAII Plus

After the cash flows are entered, we use

the [NPV] key The first display is I = and is asking us toenter the interest or discount rate. After entering the rate the [v] gives us theNPV = display. [CPT] will give us the net present value of the cash flows. 5

Example on the TI BAII PlusExample on the TI BAII Plus

CF0 = 0.00 [v]

C01 = 20000 [ENTER] [v] F1 = 1 [v]

C02 = 20000 [ENTER] [v] F2 = 1 [v]

C03 = 20000 [ENTER] [v] F3 = 1 [v]

C04 = 20000 [ENTER] [v] F4 = 1 [v]

C05 = 20000 [ENTER] [v] F5 = 1 [v]

[NPV] Display: I = 6 [ENTER] [v]

Display: NPV = [CPT]

Display: NPV = 84,443.74

Look for hidden annuitiesLook for hidden annuities Sometimes there will be annuities to simplify your calculations that are not so obvious

0 12345

0 $15,000 $15,000 $20,000 $20,000 $20,000

$47,579.42 $53,460.24 $75,080.31 A 3 Yr $20,000 annuity$27,500.89

Example on the TI BAII PlusExample on the TI BAII Plus

CF0 = 0.00 [v]

C01 = 15000 [ENTER] [v] F1 = 2 [ENTER] [v]

C02 = 20000 [ENTER] [v] F2 = 3 [ENTER] [v]

[NPV] Display: I = 6 [ENTER] [v]

Display: NPV = [CPT]

Display: NPV = 75,080.31

ExampleExample

Suppose that Consolidated Moose Pasture

(CMP) borrowed $466,500 and promised to repay $1,000,000 eight years from now.

There will be no intermediate interest

payments. What is the implied rate of interest?

On the TI BAII PlusOn the TI BAII Plus

466500 [PV]; 1000000 [+/-] [FV]; 8 [N]

[CPT][I/Y] Display = 10.00

Example - AnnuitiesExample - Annuities

Suppose you have the choice to receive

$100,000 now or $15,000 per year at the start of each of the next 10 years. [BGN][SET] (to toggle to BGN)

15000 [PMT]; 100000 [+/-][PV], 10 [N]

[CPT][I/Y] Display: 10.409 6

Converting from APR to EARConverting from APR to EAR

Consider $1 for 1 year 6% compounded

quarterly: 1.5% every quarter for 4 quarters monthly: 0.5% every month for 12 months daily: (6/365)% every day for 365 days

Effective Annual RateEffective Annual Rate

%1831.6EAR061831....1$365/61*1$FV Daily%1678.6EAR061678.1$1.005*1$FV Monthly%136.6EAR06136.1$1.015*1$FV Quarterly

365124

On the TI BAII PlusOn the TI BAII Plus

quotesdbs_dbs17.pdfusesText_23

[PDF] Financial Calculations on the Texas Instruments BAII Plus

What are the functions of the TI BA II Plus calculator?

How do I use the bond worksheet on a BaII Plus calculator?

Does Texas Instruments make a warranty?

How do I enter a data series Into my BaII plus?

© Copyright 2002, Alan Marshall1

Texas Instruments BAII Plus

Texas Instruments BAII Plus

This is a first draft, and may

© Copyright 2002, Alan Marshall2

Compounding AssumptionsCompounding Assumptions

The TI BAII Plus has built-in preset

© Copyright 2002, Alan Marshall3

Compounding AssumptionsCompounding Assumptions

Press the [P/Y] key ([2nd][I/Y])

Unless the settings have been changed,

© Copyright 2002, Alan Marshall4

Compounding AssumptionsCompounding Assumptions

For the first part of the Time Value of

Money slides, we are dealing with annual

© Copyright 2002, Alan Marshall5

An AlternativeAn Alternative

One way to make the BAII Plus work very

© Copyright 2002, Alan Marshall6

ClearingClearing

It is also very important to clear the Time

Value worksheet before doing a new set of

© Copyright 2002, Alan Marshall7

A Word on RoundingA Word on Rounding

© Copyright 2002, Alan Marshall8

Future ValuesFuture Values

© Copyright 2002, Alan Marshall9

On the TI BAII PlusOn the TI BAII Plus

44651.06 [PV]; 6 [I/Y]; 5 [N]

To get the FV

1 [PV]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall10

Present ValuesPresent Values

A contract that promised to pay you v59,753.19 in

5 years would be worth today, at 6% interest:

55%,650

© Copyright 2002, Alan Marshall11

On the TI BAII PlusOn the TI BAII Plus

59753.19 [FV]; 6 [I/Y]; 5 [N]

To get the PV

1 [FV]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall12

PerpetuitiesPerpetuities

Perpetuities, growing perpetuities and

© Copyright 2002, Alan Marshall13

PV of Annuity ExamplePV of Annuity Example

© Copyright 2002, Alan Marshall14

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

To get the PVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall15

FV of Annuity ExampleFV of Annuity Example

1)k1(600,10$FV

© Copyright 2002, Alan Marshall16

On the TI BAII PlusOn the TI BAII Plus

10,600 [PMT]; 6 [I/Y]; 5 [N]

To get the FVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall17

Annuities DueAnnuities Due

To access the toggle that switches the

© Copyright 2002, Alan Marshall18

PV of an Annuity DuePV of an Annuity Due

© Copyright 2002, Alan Marshall19

On the TI BAII PlusOn the TI BAII Plus

10,000 [PMT]; 6 [I/Y]; 5 [N]

To get the PVA

1 [PMT]; 6 [I/Y]; 5 [N]

© Copyright 2002, Alan Marshall20

FV of an Annuity DueFV of an Annuity Due

© Copyright 2002, Alan Marshall21

On the TI BAII PlusOn the TI BAII Plus

10,000 [PMT]; 6 [I/Y]; 5 [N]

To get the FVA