- This topic has 5 replies, 3 voices, and was last updated Jul-1710:37 am by
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Up12
Hi all,
A (hopefully) really simple question. I’m trying to convert yields from one period to another using the BA11 Plus. I.e., converting say a 10% p.a. rate into a quarterly or monthly rate. I’m sure there is some really easy and obvious solution to this, but I’m not overly familiar with the calculator (yet).
Any words of wisdom are much appreciated!
Cheers
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Up6
Wouldn’t it be (10%)^(1/4) for quarterly, and (10%)^(1/12) for monthly?
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Up1
If not mistaken I think it depends on whether they wanted a simple or compounded rate.
Based on 10%.
Simple Rate:
Quarterly
10% * 0.25 = 2.5%Monthly
10% / 12 months = 0.833%Compounded Rate:
Quarterly (3 months / 12 months in a year = 0.25)
1.1 ^ 0.25 –> in your BA II Plus type in 1.1 -> y^x (the button above the number 9) -> 0.25you’ll get 1.0241 which translate to 2.41%
Monthly
1.1 ^ 0.0833 ( 1/ 12 = 0.0833)
= 1.00797
or 0.8%For compounded rate it’s slightly more complicated because you can’t just use 10 ^ 0.25 you would need to use 1.1 instead (something like 2% = 1.02).
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Up0
@hairyfairy haha no worries I sometimes just write 10% as I’m too lazy to write 1 + rate or 1 + 10% so 10% is sort of understandable when it comes to power or root 😛
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