The BA II Plus calculator guide for CFA candidates

The CFA Institute allows two calculators; the BA II Plus (standard or Professional) is one of them. Either version is fine for CFA Level 1; the Professional just adds a few extras you rarely need. Get comfortable with the keys below well before exam day so the calculator never slows you down.

Two keys you will lean on constantly: 2ND (the yellow shift, to reach the function printed above a key) and CPT (compute the missing value).

Three settings save you from the most common errors:

Decimal places. Show more precision so rounding does not bite:
2ND›FORMAT›4›ENTER›2ND›QUIT

Payments per year (P/Y): set to 1 and treat rates and periods yourself. This single setting causes more wrong answers than anything else:
2ND›P/Y›1›ENTER›2ND›QUIT

Calculation method: chain (Chn) is the most predictable. In the Format worksheet, scroll with ↓ to the method line and toggle with 2ND SET.

Clear before every problem. TVM values persist. Reset the TVM keys with 2ND›CLR TVM and any worksheet with 2ND›CLR WORK. A full reset is 2ND›RESET›ENTER.

Five keys drive most of quant: N (periods), I/Y (rate per period, as a percent), PV, PMT, FV. Enter any four, then CPT the fifth.

Sign convention: money leaving you is negative, money coming to you is positive. If you invest today, PV is negative and FV is positive. Use the +/- key to make a number negative.

For an annuity due (payments at the start of each period), switch to BGN mode with 2ND›BGN›2ND›SET›2ND›QUIT. Remember to switch it back to END afterwards.

When cash flows are uneven, use the CF worksheet, then compute NPV and IRR.

(After each cash flow the calculator asks for its frequency F. Leave it at 1 unless the same amount repeats, then enter how many times it repeats.)

Convert a nominal annual rate to an effective annual rate (and back) with the interest conversion worksheet, 2ND›ICONV.

Enter a data set in the 2ND›DATA worksheet, then read results in 2ND›STAT.

A plain-vanilla bond is just a TVM problem: N = periods, I/Y = yield per period, PMT = coupon per period, FV = face value, then CPT PV for the price. For semi-annual bonds, halve the coupon and yield and double the periods.

After a loan TVM setup, the 2ND›AMORT worksheet breaks a range of payments into balance, principal, and interest. Set the start payment P1 and end payment P2, then scroll with ↓ to read BAL, PRN, and INT.

• P/Y not set to 1. This is the number-one cause of wrong TVM answers.
• Not clearing between problems: old PV/PMT/FV values carry over. Clear TVM every time.
• Sign errors: if PV and FV have the same sign, the calculator often returns an error or a nonsense rate.
• BGN mode left on from an annuity-due problem. Switch back to END.
• Too few decimals shown, so rounded intermediate values throw off the final answer.
• Mixing annual and semi-annual inputs on bonds.