Texas Instruments BA Real Estate - Finding the Purchase Price of a Note to Meet a Required Yield

Prepared for ________________________________ By _________________________ Date ____________
Copyright © 1993, 1996 by Texas Instruments Incorporated.
34
BA Real Estate™ Worksheet

Texas Instruments grants permission to reproduce this page for limited office use with clients. All other rights reserved.
Finding the Purchase Price of a Note
to Meet a Required Yield
1. Clear TVM values (if not already cleared).
# -
2. Enter term of original note (in years).
0
3. Enter interest rate of original note.
1
4. Enter amount of original note.
2
5. Compute original payment.
$ 3
6. Recall total number of payments in original
note, and store in memory.
] # *
T g
7. Enter number of payments already made.
__
O
__
j
# *
8. Compute current unpaid balance.
$ 4
9. Recall original number of payments.
] g
10. Subtract number of payments already
made to find number of remaining
payments, and save as N.
X
] # * j # *
11. Set FV to zero, and then enter required yield
(for example, enter 10% as 10).
r 4 1
12. Compute discounted present value.
$ 2