Tag PV

Make-whole Call Provisions on the TI BAII Plus Pro

The article explains the concept of a "make-whole" call provision in bonds, highlighting its benefits for both investors and issuers. Unlike traditional call provisions that offer face value plus a small premium, make-whole calls ensure investors receive the present value of remaining cash flows, calculated using a discount rate tied to a comparable Treasury security. This provision provides issuers flexibility without paying a call premium. The article demonstrates three methods to calculate the make-whole price using a TI BAII Plus financial calculator, ensuring that investors are fairly compensated if the bond is called early.

Graduated Annuities on the TI BAII Plus Pro

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…

BAII Plus Tutorial, Part III

This article focuses on using the TI BAII Plus financial calculator to calculate the present and future values of uneven cash flow streams. It explains how to handle uneven cash flows, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR). The tutorial provides step-by-step instructions for inputting cash flows and calculating these financial metrics, emphasizing the importance of correct data entry and using specific keys on the calculator. The article aims to help readers effectively evaluate investments with varying cash flows using the TI BAII Plus.

TI BAII Plus Pro Tutorial, Part III

This article focuses on using the TI BAII Plus Professional financial calculator to calculate the present and future values of uneven cash flow streams. It explains how to handle uneven cash flows, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR). The tutorial provides step-by-step instructions for inputting cash flows and calculating these financial metrics, emphasizing the importance of correct data entry and using specific keys on the calculator. The article aims to help readers effectively evaluate investments with varying cash flows using the TI BAII Plus Professional.

TI BAII Plus Tutorial, Part II

This article covers the use of the TI BAII Plus financial calculator to calculate the present and future values of regular annuities and annuities due. It explains that a regular annuity involves equal cash flows at the end of each period, while an annuity due has the first cash flow at the start. The tutorial provides step-by-step instructions for solving for present value, future value, payment amounts, number of periods, and interest rates for annuities. It also includes details on handling perpetuities and the importance of setting the calculator to the correct mode for accurate calculations.

TI BAII Plus Pro Tutorial, Part II

This article covers the use of the TI BAII Plus Professional financial calculator to calculate the present and future values of regular annuities and annuities due. It explains that a regular annuity involves equal cash flows at the end of each period, while an annuity due has the first cash flow at the start. The tutorial provides step-by-step instructions for solving for present value, future value, payment amounts, number of periods, and interest rates for annuities. It also includes details on handling perpetuities and the importance of setting the calculator to the correct mode for accurate calculations.

TI BAII Plus Tutorial, Part I

This article focuses on handling lump sum cash flows using the TI BAII Plus financial calculator. It begins with setup instructions, recommending annual compounding and adjusting decimal places. The tutorial covers calculating the future value, present value, number of periods, and interest rates for lump sums. Emphasizing correct data entry and understanding financial principles, the article aims to equip readers with the fundamental skills needed to effectively use the calculator for finance courses and real-world applications. It also highlights the importance of adhering to the cash flow sign convention.

TI BAII Plus Pro Tutorial, Part I

This article focuses on handling lump sum cash flows using the TI BAII Plus financial calculator. It begins with setup instructions, recommending annual compounding and adjusting decimal places. The tutorial covers calculating the future value, present value, number of periods, and interest rates for lump sums. Emphasizing correct data entry and understanding financial principles, the article aims to equip readers with the fundamental skills needed to effectively use the calculator for finance courses and real-world applications. It also highlights the importance of adhering to the cash flow sign convention.

HP 10B Tutorial Part I

If the picture at right doesn’t match your calculator, you may have the newer HP 10BII. These calculators differ slightly, so you may prefer the HP 10BII tutorial (it doesn’t matter too much). The Hewlett Packard 10B is a very easy to use financial calculator that will serve you well in all finance courses. This tutorial will demonstrate how to…