Education Technology

# Knowledge Base

## Solution 11218: Bond Worksheet on the BA II PLUS™ and the BA II PLUS™ PROFESSIONAL.

### How do I use the Bond worksheet on the BA II PLUS or the BA II PLUS PROFESSIONAL?

For Example: An annual bond is purchased that matures on 10/31/2003 to settle on 4/1/2002. The bond is based on the actual/actual day-count method with a coupon rate of 8.5%. It will be redeemed at 100% of its par value. For an 9.75% yield to maturity, compute the bond's price and accrued interest.

1) Press [2nd][Bond] to enter the Bond worksheet
2) Press [2nd][CLR Work] to clear the worksheet
3) Input 4.0102 and press [ENTER] to input the settlement date (ENTER is located to the right of CPT)
4) Press the [Down Arrow] once, then input 8.5, and press [ENTER] to enter the coupon rate
5) Press the
[Down Arrow] once, then input 10.3103, and press [ENTER] to enter the redemption date
6) Press the
[Down Arrow] once and make sure RV (redemption value) is set to 100
7) Press the
[Down Arrow] once and, if necessary, press [2nd][SET] until ACT is displayed for actual/actual day-count method
8) Press the
[Down Arrow] once and, if necessary, press [2nd][SET] until 1/Y is displayed for one coupon payment per year
9) Press the
[Down Arrow] once, then input 9.75, and press [ENTER] to enter the yield
10) Press the
[Down Arrow] once and press [CPT] to compute the price, which is 98.15
11) Press the
[Down Arrow] once to view the accrued interest, which is 3.54

Please see the BA II PLUS or BA II PLUS PROFESSIONAL guidebooks for additional information.