/BA-II-Plus-Professional

:iphone: Cataloging useful features of the BA II Plus Professional.

BA II Professional

A list of helpful tips & tricks:

  • Increasing/Decreasing Annuity - This method is a bit of a hack and you still need to divide through by the interest rate.

  • Compound Growth Annuity - Much like calculating a normal Annuity but with a clever trick at t=60s.

  • Bond Spreadsheet - An example of calculating bond price PRI and accrued interest AI on a bond. Interest is accrued when the bond is sold between coupon payments. The BA II Plus uses the Semi-Theoretical Method.

semi theoretical

  • Format Settings - Switch between Chain (CHN: operators are applied immediately with no precedence) and Algebraic Operating System (AOS: the expression is evaluated using PEMDAS).

  • Calculating the modified duration of an annuity immediate.

What is the modified duration of a 4 year annuity with level payments of $500 and a 6% annual yield?

2ND BOND
SDT 1-01-2000
CPN 9,999,999,999 use the largest number possible since coupon (CPN) is a percentage of redemption value (RV), which is zero.
RDT 1-01-2004
RV 0
1/Y
YLD 6
PRI CPT = 3.4651 a(4,6)
DUR 2.2898 ⬅️ 🤓 💯