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Up0
Hi. So this isn’t actually an issue regarding CFA but I was hoping you might be able to help me.
For Uni I have to solve for the yield of BABs in order to calculate the profit/loss from different hedging positions. I was wondering if there’s a function on the TI BAII Plus Pro for it, or what the easiest formula is to use?
To give you an example:
FV=900,000
PV=859,464
120 days to maturity.
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Up4
Thank you Vincentt, of course… I don’t know why my mind came up blank, I knew that…
Guess my winter break was a bit too long haha! -
Up0
I’m assuming BABs use the typical bond calculation.
HPY = 900,000/859,464 = 1.04716
6 months = 1.04716 ^ (180/120) = 1.07157
6 months yield = 7.157%
annual bond yield = 7.157 * 2 = 14.314%
* Again, i could be wrong, so feel free to correct me.
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