Category TI 84 Plus

Calculating Portfolio Standard Deviations On the TI 84+ Calculator

The article explains how to calculate the standard deviation of a portfolio using matrix algebra on a TI 83/84 calculator. It first introduces the formula for a two-security portfolio and extends it to multiple securities. The example portfolio consists of four securities, and the tutorial demonstrates how to input the variance/covariance matrix and the weight vector into the calculator. Using matrix functions, the article shows how to compute the portfolio’s variance and standard deviation, with step-by-step instructions, leading to a final result of a portfolio standard deviation.

Graduated Annuities on the TI 84 Plus

Strictly speaking, an annuity is a series of equal cash flows, equally spaced in time. However, a graduated annuity (also called a growing annuity) is one in which the cash flows are not all the same, instead they are growing at a constant rate (any other series of cash flows is an uneven cash flow stream). So, the two types…

How to Calculate Duration and Convexity of a Bond on the TI 84 Plus

The article provides a practical guide for calculating bond portfolio metrics like modified duration, Macaulay duration, and convexity using the TI-84 Plus calculator. It explains that while traditional formulas for these metrics are complex and tedious for manual entry, they can be approximated with high accuracy on the calculator. The method involves calculating the bond price at slightly different yields, saving these prices in the calculator’s memory, and then using them to approximate the metrics through simple formulas. This approach is accurate enough for practical use and eliminates the need for memorizing complicated formulas.

Loan Amortization on the TI 84 Plus

This tutorial explains how to create an amortization schedule for a fixed-rate loan using a TI 84 Plus calculator. The tutorial covers entering loan details into the TVM Solver, calculating monthly payments, and breaking down each payment into interest and principal. It also demonstrates using built-in functions (ΣInt, ΣPrn, and Bal) to automate calculations and create a complete amortization table. The tutorial includes tips for adjusting loan terms and efficiently navigating the amortization schedule. For those preferring spreadsheets, a separate tutorial is recommended.

Bond Yield Calculation on the TI 84 Plus Calculator

One of the key variables in choosing any investment is the expected rate of return. We try to find assets that have the best combination of risk and return. In this section we will see how to calculate the rate of return on a bond investment. If you are comfortable using the TVM Solver, then this will be a simple…

Make-Whole Call Provisions on the TI 84 Plus

In recent years, bond issuers have changed from the traditional call schedule to a “make-whole” type of call. Generally, this is good for investors as it makes it less likely that high interest bonds will be called. If it is called, then they are “made whole” because they are paid the present value of the remaining cash flows. In a…

Bond Valuation on the TI 84 Plus Calculator

A bond is a debt instrument, usually tradable, that represents a debt owed by the issuer to the owner of the bond. Most commonly, bonds are promises to pay a fixed rate of interest for a number of years, and then to repay the principal on the maturity date. In the U.S. bonds typically pay interest every six months (semi-annually),…