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=900,000PV=859,464120 days to maturity.

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!

I'm assuming BABs use the typical bond calculation.HPY = 900,000/859,464 = 1.047166 months = 1.04716 ^ (180/120) = 1.071576 months yield = 7.157%annual bond yield = 7.157 * 2 = 14.314%* Again, i could be wrong, so feel free to correct me.

A CFA General Discussion About Solving For Yield On BABs

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This topic has 2 replies, 2 voices, and was last updated Nov-175:58 pm by CedricJ.

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- CedricJ
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  - CFA Level 2
  26 Nov 2017 at 5:58 pm
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  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!
- vincentt
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  - CFA Level 3
  26 Nov 2017 at 4:22 pm
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  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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