To calculate the YTM, just enter the bond data into the TVM keys. We can find the YTM by solving for I/Y. Enter 6 into N, -961.63 into PV, 40 into PMT, and 1,000 into FV. Now, press CPT I/Y and you should find that the YTM is 4.75%.
In this way, what is error 5 on BA II Plus?
The Error 5 is triggered when no solution exists for the value that you’re trying to calculate. When the logarithm input is not greater than 0 when using Time Value of Money, Cash Flow or Bond worksheets. When the user forgets to include one negative cash flow in a Cash Flow worksheet list.
Beside above, how do I calculate net present value? Formula for NPV
- NPV = (Cash flows)/( 1+r)i.
- i- Initial Investment.
- Cash flows= Cash flows in the time period.
- r = Discount rate.
- i = time period.
Also to know is, how do you calculate discounts on a calculator?
Just follow these few simple steps:
- Find the original price (for example $90 )
- Get the the discount percentage (for example 20% )
- Calculate the savings: 20% of $90 = $18.
- Subtract the savings from the original price to get the sale price: $90 – $18 = $72.
- You’re all set!
What is the formula for calculating coupon rate?
Coupon rate is calculated by adding up the total amount of annual payments made by a bond, then dividing that by the face value (or “par value”) of the bond. For example: ABC Corporation releases a bond worth $1,000 at issue. Every six months it pays the holder $50.
4 Related Question Answers Found
What is the formula for calculating bond price?
Bond Price = ∑(Cn / (1+YTM)n )+ P / (1+i)n Bond Price = 100 / (1.08) + 100 / (1.08) ^2 + 100 / (1.08) ^3 + 100 / (1.08) ^4 + 100 / (1.08) ^5 + 1000 / (1.08) ^ 5. Bond Price = 92.6 + 85.7 + 79.4 + 73.5 + 68.02 + 680.58. Bond Price = Rs 1079.9.
How is face value calculated?
F = face value, iF = contractual interest rate, C = F * iF = coupon payment (periodic interest payment), N = number of payments, i = market interest rate, or required yield, or observed/ appropriate yield to maturity, M = value at maturity, usually equals face value, P = market price of bond.
How do you find PMT yield to maturity?
The Yield to Maturity (YTM) is 5.3344%, here’s how to calculate: n = 5. PV = ($1,050) PMT = $65 ($1,000 par x 6.5% annual coupon) FV = $1,000. i or YTM = 5.3344 or 5.3344%
What is the difference between TI BA II Plus and professional?
Basically, both Texas Instruments BA II Plus financial calculators function the same way. Perhaps the only difference is that the Texas Instruments BA II Plus Professional has a sturdier build and a stronger keypad. The keypad is studier than that of the TI BA II Plus.