Is there a way to do it with the TI BA II, as opposed to discounting each CF based on its respective spot rate that year? It just seems to be way too time consuming if we're dealing with a great number of years.

Yes, it is time consuming. This is why they probably won't put a question with many years on the real test. The committee that designs the tests pays a lot of attention to the amount of time a question takes to answer. They may have a few questions that take more than 90 seconds, but they would be particularly difficult questions.

I reckon that makes sense. It's more about knowing the appropriate tools to use, instead of having you jump through needless hoops. Thanks Paul

A CFA Level 1 Discussion About Valuing A Bond Using Spot Rates

Add A Reply

This topic has 2 replies, 2 voices, and was last updated Dec-179:30 pm by malkadhi.

Author

Posts
- PaulAdaptPrep
  Participant
  - Undecided
  25 Dec 2017 at 7:35 pm
  Up
  1
  ::
  Yes, it is time consuming. This is why they probably won’t put a question with many years on the real test. The committee that designs the tests pays a lot of attention to the amount of time a question takes to answer. They may have a few questions that take more than 90 seconds, but they would be particularly difficult questions.
- malkadhi
  Participant
  25 Dec 2017 at 9:30 pm
  Up
  1
  ::
  I reckon that makes sense. It’s more about knowing the appropriate tools to use, instead of having you jump through needless hoops. Thanks Paul
Author

Posts

Viewing 1 reply thread

You must be logged in to reply to this topic.