The bond pays a semiannual coupon:
Coupon = 9.2% ÷ 2 = 4.6% → MXN4.60 every six months.

YTM per period = 10.0% ÷ 2 = 5.0% → 0.05

Number of periods = (10 − 2) × 2 = 16

Use the formula:

Price = PV of coupons + PV of face value
= 4.60 / 1.05 + 4.60 / 1.05² + ... + 4.60 / 1.05¹⁶ + 100 / 1.05¹⁶
= MXN 96.76 (rounded)

Using the BA II Plus Calculator (Recommended):

1. 2nd → FV (to clear TVM inputs)

2. N = 16

3. I/Y = 5

4. PMT = 4.6

5. FV = 100

6. Press CPT → PV
   Result: −96.76

Thus, the bond is priced at MXN96.76.

We must calculate the future value of each individual payment, compounding it forward to Year 10:

• FV of Year 1 payment ($80,000):
  FV = 80,000 × (1.04)^9 = 80,000 × 1.432 = $114,560

• FV of Year 2 payment ($120,000):
  FV = 120,000 × (1.04)^8 = 120,000 × 1.3686 = $164,232

• FV of Year 3 payment ($180,000):
  FV = 180,000 × (1.04)^7 = 180,000 × 1.319 = $237,078

Total Future Value ≈ $114,560 + $164,232 + $237,078 = $544,370

BA II Plus Steps:
You’ll do three individual FV calculations:

1. For Year 1:

• N = 9

• I/Y = 4

• PV = -80,000

• PMT = 0

• CPT → FV = 114,560

2. For Year 2:

• N = 8

• PV = -120,000

• CPT → FV = 164,232

3. For Year 3:

• N = 7

• PV = -180,000

• CPT → FV = 237,078

Then manually add the three results to get: $544,370.

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We are solving for the monthly PMT (payment) on a fully amortizing loan.

Given:

• PV = €12,000

• N = 4 years × 12 months = 48

• I/Y = 6% annual ÷ 12 months = 0.5 It is important to note that since the interest rate is nominal, it must be divided by 12 to find a monthly periodic rate.

• FV = 0 (loan is fully paid off)

• PMT = ?

BA II Plus Calculator Steps:

1. Press 2nd → FV to clear TVM values

2. Input:

   • N = 48

   • I/Y = 0.5

   • PV = 12000

   • FV = 0

   • PMT = ?

3. Press CPT → PMT

4. Result: −282.55

(The negative sign indicates a cash outflow—i.e., the payment you make.)

Step 1: Calculate the present value of the loan:

Loan = 80% × $4,500,000 = $3,600,000

Step 2: Identify calculator inputs:

• N = 20 years × 12 months = 240

• I/Y = 5.4% annual ÷ 12 = 0.45% per month

• PV = 3,600,000

• FV = 0 (fully amortized)

• PMT = ?

BA II Plus Steps:

1. Press 2nd → FV to clear time value memory

2. Input:

   • N = 240

   • I/Y = 0.45

   • PV = 3600000

   • FV = 0

   • CPT → PMT

3. Output:
   → PMT = -24,915.08

(The result is negative because it represents a cash outflow, i.e., a monthly payment.)

This is a present value of an annuity due, because the first payment is made immediately.

BA II Plus Calculator Steps:

1. Press 2nd → PMT to set calculator to Begin Mode (annuity due):

   • 2nd → BGN → 2nd → SET → (should show BGN in screen corner) → 2nd → QUIT

2. Press 2nd → FV to clear time value entries.

3. Input:

   • N = 72 (6 years × 12 months)

   • I/Y = 6.5 ÷ 12 = 0.5417

   • PMT = -1500

   • FV = 0

4. Press CPT → PV

   • PV = €101,157

This is a classic Dividend Discount Model (DDM) question using the Gordon Growth Model (Constant Growth):

p _{0} = \frac{D_{1}}{r - g}

Where:

• D1 = Next year’s dividend = D0 × (1+g) = 3.20 × 1.04 = €3.328

• r = 9% = 0.09

• g = 4% = 0.04

P _{0} = \frac{3.328}{0.09 - 0.04} = \frac{3.328}{0.05} = 66.56

This is a Dividend Discount Model (DDM) question using the Gordon Growth Model:

p _{0} = \frac{D_{1}}{r - g}

Where:

• D0 = 2.60 D0 = 2.60

• g = 4% = 0.04g = 4

• r = 9% = 0.09r = 9

Calculate next year’s dividend:

D1​ = D0​ × (1+g) = 2.60 × 1.04 = 2.704

Use the Gordon Growth Model Formula to solve:

P_{0} = \frac{D_{1}}{r - g} = \frac{2.704}{0.09 - 0.04} = 54.08

Step 1: Calculate the present value (PV) of the retirement withdrawals.
This is an ordinary annuity:
PMT = 90,000
N = 20
I/Y = 5.5
FV = 0
Solve for PV:

On BA II Plus:

1. [2nd] [CLR TVM]

2. N = 20

3. I/Y = 5.5

4. PMT = -90,000

5. FV = 0

6. CPT → PV ≈ 1,123,752.18

Step 2: Use this PV as the FV of the working years savings.
We solve for N given:
FV = 1,123,752.18
PMT = -7,200
I/Y = 5.5
PV = 0

On BA II Plus:

1. [2nd] [CLR TVM]

2. PMT = -7,200

3. I/Y = 5.5

4. PV = 0

5. FV = 1,123,752.18

6. CPT → N ≈ 46.0

She will need to make 46 deposits to meet her goal.

We are using a multi-stage dividend discount model:

• D₀ = 2.00

• Growth for 2 years: 5%

• Long-term growth: 4%

• Required return: 9%

Step 1: Forecast Dividends

• D₁ = 2.00 × 1.05 = 2.10

• D₂ = 2.10 × 1.05 = 2.205

• D₃ = 2.205 × 1.04 = 2.2932

Step 2: Calculate Terminal Value at end of Year 2

Use the Gordon Growth Model for dividends from year 3 onward:

P _{2} = \frac{D_{3}}{r - g} = \frac{2.2932}{0.09 - 0.04} = 45.864

Step 3: Discount D₁, D₂, and P₂ to Present Value

Use BA II Plus:

1. 2nd → CLR TVM

2. Cash Flow Mode:

   • CF0 = 0

   • C01 = 2.10

   • C02 = 2.205 + 45.864 = 48.069

3. NPV

   • I = 9

   • Compute NPV → ≈ 46.18

This is a deferred ordinary annuity. The present value is calculated in two parts:

Step 1: Calculate the PV at time = 5

This is a regular annuity with:

• PMT = 12,000

• N = 8

• I/Y = 7%

• FV = 0

• Solve for PV (at time = 5)

BA II Plus Steps:

1. 2nd → CLR TVM

2. N = 8

3. I/Y = 7

4. PMT = -12,000

5. FV = 0

6. CPT → PV ≈ 75,112.18

Step 2: Discount the PV back to today (time = 0)

Now take the PV of that lump sum (75,112.18) discounted 5 years at 7%:

PV = \frac{75,112.18}{(1 + 0.07)^{5}} = 59,822

Or using BA II Plus:

1. 2nd → CLR TVM

2. N = 5

3. I/Y = 7

4. PV = ?

5. FV = 75,112.18

6. PMT = 0

7. CPT → PV ≈ 59,822