Calculating bond price on calculator with different spot rates

[Jones473]

Question 16 from practice questions on the CFA website.
[question removed by admin]

This could be done manually, one cash flow at the time. But how could I solve this using functions on the BAII Plus? With the TVM functions it seems I can only discount with one interest rate.

 

[Oscar]

No way to do this other than manually on the calculator as the CF function assumes an a-priori known constant discount rate.
However, once you have the result you could calculate the overall discount rate which leads to the calculated bond value. But this is pointless since you already have the result and the discount rate would only be known on a posteriory basis.
In this casr the result would be 101.98 (Answer C): Using the calculator: PV= 101.98; N=5; PMT=-1; FV= -100 –> Solve for I/Yx2= 1.95%.
This would be discount rate (if known, which however is not the case here) which would make it possible to solve the question fully with the calculator.
Regards,
Oscar