标题: calculating the bond value using the calculator [打印本页]

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作者: rosemary2011    时间: 2011-7-13 14:20     标题: calculating the bond value using the calculator

Hi, i have a question from qbank and i like to how to calculate the bond future price using the BA 2 plus calculator

An investor buys a 20-year, 10% semi-annual bond for $900. She wants to sell the bond in 6 years when she estimates yields will be 10%. What is the estimate of the future price?

A) $1,079.

B) $1,000.

C) $946.


Your answer: A was incorrect. The correct answer was B) $1,000.

Since yields are projected to be 10% and the coupon rate is 10%, we know that the bond will sell at par value.


The values i input in the calculator are:

PV = -900
PMT = 100/2
n = 6*2
I/Y = 10/2
CPT FV = 820.41

The future value i get is $820.41. Actually is there anything wrong with the values i input?

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作者: soddy1979    时间: 2011-7-13 14:20

You're assuming that current yields are 10%, but in the structure of the question, it doesn't really matter what current yields are nor is it given.

There are no calculations required in the problem - since Yield = Coupon at in 6 years (10% = 10%) it would sell at par value = $1000.

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