# BA II Plus calculator for FRM Part I quant and valuation A free browser BA II Plus for FRM Part I: discount counterparty exposures, price bonds, read duration, and convert continuously compounded rates with eˣ and LN. GARP-approved model. Canonical URL: https://exclam.ai/frm/ba-ii-plus-calculator/ [FRM](https://exclam.ai/frm/changes-2026/index.md)/BA II Plus calculator GARP-approved for the FRM exam Practice the risk-manager keystrokes in your browser: discount an expected counterparty exposure, price a bond from its yield, gauge interest-rate sensitivity, and convert continuously compounded rates with the eˣ and LN keys. The BA II Plus is the default calculator most FRM providers teach first. [Start tutorial](https://exclam.ai/frm/ba-ii-plus-calculator/index.md#tutorial) [FRM worked examples](https://exclam.ai/frm/ba-ii-plus-calculator/index.md#frm-examples) Discounting expected exposures for counterparty risk Bond price, yield, and duration for Valuation & Risk Models Continuous compounding with the eˣ and LN keys Statistics and regression practice for Quantitative Analysis ## Drive the BA II Plus like an FRM candidate Click a step to load its keystrokes beside the calculator. The sequence walks from algebraic entry through continuous-compounding conversions, discounting, and reading interest-rate sensitivity. ### 1. Enter arithmetic in reading order The BA II Plus is an algebraic calculator, so you key an expression the way it is written. Parentheses group the terms of the FRM valuation and risk formulas you rearrange under time pressure. 1.0816÷1.03= Result: 1.050097 ### 2. Convert rates with eˣ and LN Continuous compounding runs through the exponential keys. Press 2ND eˣ to exponentiate a continuously compounded rate, and LN to move an effective factor back to a continuous rate. .082NDeˣ Result: 1.083287 ### 3. Load the TVM worksheet for discounting For a single expected cash flow, set P/Y to 1, store the horizon in N, the discount rate in I/Y, PMT at 0, and the exposure in FV. This is the discounting backbone of counterparty and bond problems alike. 1 P/Y3 N4 I/Y0 PMT10000000 FV Result: Worksheet set ### 4. Solve the present value With four TVM fields known, press CPT then the unknown key. CPT PV discounts the stored exposure back to today; the sign convention returns it as a negative figure. CPTPV Result: -8,889,963.59 ### 5. Bracket a yield to read sensitivity To gauge interest-rate risk, re-price a bond at a slightly higher and lower yield, then combine the two prices. This gives an effective duration without a closed-form derivative. CPT PV @5.5%CPT PV @6.5% Result: P− and P+ prices ### FRM keystroke checklist Set P/Y to 1 first so a per-annum risk-free rate maps straight onto each yearly cash flow. Give money received and money paid opposite signs, or CPT PV hands back a sign you did not expect. Reach for 2ND eˣ to grow a continuously compounded rate and LN to pull one back — never round to an effective proxy. Build expected loss as PD × LGD × EAD on the display before you discount it, not after. Read duration by re-pricing at bracketing yields when the closed-form derivative is fiddly under time pressure. Push the display to more decimal places with 2ND FORMAT before basis-point work so DV01-scale differences survive rounding. Open the statistics register (2ND DATA, then 2ND STAT) for the Quantitative Analysis book — mean, sample deviation, and the regression slope live there, not on the TVM row. Rehearse the whole keystroke chain on the physical BA II Plus you will actually carry into the FRM — GARP lists it, but only muscle memory clears it. ## FRM-style worked examples Click an example to slot its setup, keystrokes, and answer beside the calculator. These are original practice items written for risk candidates, not GARP exam questions. Quantitative Analysis: continuous compounding ### Continuously compounded rate to an effective annual rate A funding desk quotes a 8% continuously compounded rate. Convert it to the equivalent effective annual rate with the exponential key: key .08, press 2ND eˣ, then subtract 1. .082NDeˣ−1= Answer: 0.083287 (8.3287%) eˣ turns the continuously compounded rate into a growth factor; subtracting 1 leaves the effective annual rate. This is the reverse of the LN step you use to move an effective rate back to a continuous one. Valuation & Risk Models: counterparty exposure ### Discount an expected counterparty exposure to present value A single expected exposure of $10,000,000 falls due in 3 years. At a 4% risk-free discount rate, discount it to today using the TVM worksheet with annual compounding. 1 P/Y3 N4 I/Y0 PMT10000000 FVCPT PV Answer: -8,889,963.59 CPT PV returns a negative number because the future exposure and its present value sit on opposite sides of the cash-flow sign convention. The discounted exposure is about $8.89m. Valuation & Risk Models: bond pricing ### Price an annual-coupon bond from its yield A 4-year bond pays a 5% annual coupon on 100 face value and yields 6%. Store the cash flows in the TVM worksheet and solve for present value. 1 P/Y4 N6 I/Y5 PMT100 FVCPT PV Answer: 96.5349 CPT PV shows -96.5349; the clean price is 96.5349 per 100 face. It trades below par because the 5% coupon is under the 6% yield — a discount bond. Valuation & Risk Models: interest-rate sensitivity ### Effective duration by re-pricing the bond Take the same 4-year 5% bond priced at 96.5349 (yield 6%). Re-price it at 5.5% and 6.5%, then apply effective duration = (P− − P+) / (2 · P0 · Δy) with Δy = 0.005. P− = 98.2474P+ = 94.8613(98.2474−94.8613)÷ (2×96.5349×.005)= Answer: 3.5077 Effective duration is about 3.51, so a 100bp parallel yield move changes the price by roughly 3.51%. Re-pricing at bracketing yields is the model-free way to get duration when a closed form is awkward. Credit Risk: expected loss ### Present value of an expected credit loss (PD × LGD × EAD) A one-name limit carries a 3% one-year default probability, 60% loss-given-default, and $10,000,000 exposure-at-default. Build the expected loss as a product chain — .03 × .60 × 10000000 — then discount that loss two years out at a 5% risk-free rate on the TVM worksheet. .03 × .60 × 10000000 =STO FV1 P/Y2 N5 I/Y0 PMTCPT PV Answer: -163,265.31 The expected loss itself is $180,000 (0.03 × 0.60 × 10,000,000); discounting two years at 5% brings its present value to about $163,265. Decomposing risk into PD, LGD, and EAD before discounting is the credit-risk analogue of pricing any other future cash flow. exclam.ai BA II Plus-styleChn · DEG · DEC 5 0 0.00000 QUITCPTSETENTERDEL↑INS↓ = 2NDPBCFNFVNPVDPBIRR → xP/YNP/YI/YAMORTPVBGNPMTCLR TVMFV K% √x x² 1/xRAND÷ HYPINVSIN(COS)TANyˣx!× eˣLNDATA7STAT8BOND9nPr- ROUNDSTODEPR4Δ%5BRKEVN6nCr+ RCLDATE1ICONV2PROFIT3ANS= CLR WORKCE/CMEM0FORMAT.RESET+/- Ready · Chn · DEG · DEC 5 Loaded example ## 1. Enter arithmetic in reading order Tutorial The BA II Plus is an algebraic calculator, so you key an expression the way it is written. Parentheses group the terms of the FRM valuation and risk formulas you rearrange under time pressure. 1.0816÷1.03= Result: 1.050097 TutorialEnter arithmetic in reading orderTutorialConvert rates with eˣ and LNTutorialLoad the TVM worksheet for discountingTutorialSolve the present valueTutorialBracket a yield to read sensitivityFRM Part IContinuously compounded rate to an effective annual rateFRM Part IDiscount an expected counterparty exposure to present valueFRM Part IPrice an annual-coupon bond from its yieldFRM Part IEffective duration by re-pricing the bondFRM Part IPresent value of an expected credit loss (PD × LGD × EAD) ## See the risk math, not just the answer These visuals are recomputed from the same bond and discounting routines behind the worked examples. They turn three FRM ideas the BA II Plus keys out one number at a time — price convexity, the duration approximation error, and a discounted exposure path — into a shape you can read at a glance. Figure: Price–yield curve of the 4-year 5% bond Full-repricing value Hover or focus a point to inspect the curve. Figure: Why duration alone understates a big rate move Actual price (repriced)Linear duration estimate (D ≈ 3.51) Hover or focus a point to inspect the curve. Figure: Discounted expected-exposure profile at 4% Hover or focus a bar to inspect the value. ### Reading the exposure chart Each bar is one year of an amortizing counterparty limit, pulled to today at the risk-free rate — the same present-value keystroke as the exposure example above, repeated across the life of the trade. The profile bulges mid-life and runs off toward maturity, the tell-tale shape of a single swap-style exposure. Time-averaged discounted exposure 4890345 Averaging the discounted bars is the arithmetic behind expected positive exposure (EPE) — the input a CVA charge scales by a counterparty’s default probability and loss-given-default. Which calculators GARP allows on the FRM GARP publishes a short, specific approved-calculator list. The BA II Plus is the model most prep providers (Schweser, Bionic Turtle, AnalystPrep) teach first, while RPN candidates reach for the HP 12C. Confirm the current wording before exam day. ### TI BA II Plus / BA II Plus Professional Permitted. The dominant default taught first by most FRM providers. ### HP 12C (incl. Platinum / Prestige) Permitted. The established RPN choice — pick it if you already work in reverse Polish notation. ### HP 10B II, HP 10B II+, HP 20B Also on the GARP-approved business-calculator list. ### Scientific models (e.g. TI-30XS MultiView) Not on the FRM list. Bring one of the permitted business calculators instead. Source: GARP FRM exam policies — [garp.org/frm/exam-policies](https://www.garp.org/frm/exam-policies). ## Building your own FRM study system? Past the calculator, the FRM is a coverage problem: two parts, a fixed exam window, and quant topics that decay if you never revisit them. Point exclam.ai at your own FRM notes and it schedules the reading, spaced flashcards, and quizzes back from your exam date — and re-plans the moment you fall behind. It reads your uploaded material, so it isn't tied to any one syllabus. ## Work in RPN instead? The HP 12C is also GARP-approved and uses reverse Polish notation. Try the RPN page for square-root VaR scaling, continuous discounting, and forward rates keyed on the stack. [Open HP 12C for the FRM](https://exclam.ai/frm/hp12c-calculator/index.md) ## FRM calculator FAQ Is the BA II Plus allowed on the FRM exam? Yes. GARP authorizes the Texas Instruments BA II Plus and BA II Plus Professional for the FRM exam. GARP also permits the HP 12C (including Platinum and Prestige), the HP 10B II, HP 10B II+, and HP 20B. The list is short and specific, so confirm the current wording at garp.org/frm/exam-policies before test day. Is the TI-30XS or TI-30X MultiView allowed on the FRM? No. The GARP approved-calculator list is limited to the models named above (the BA II Plus family, the HP 12C family, and the HP 10B II / 10B II+ / 20B). Scientific models such as the TI-30XS MultiView are not on the FRM list, so plan to bring one of the permitted business calculators. Which BA II Plus functions matter most for FRM Part I? FRM candidates lean on discounting cash flows, bond price and yield, interest-rate sensitivity (duration), and continuous compounding via the eˣ and LN keys, alongside the statistics and regression registers for the Quantitative Analysis book. It is more than plain time-value-of-money work. Does this FRM practice tool run the real Texas Instruments BA II Plus firmware? No. This is an independent BA II Plus-style calculator that recreates common algebraic entry, TVM, exponential, and cash-flow workflows in the browser. It does not use Texas Instruments firmware or copied assets, so treat it as practice and always rehearse on the physical model you will bring. FRM and GARP are trademarks of the Global Association of Risk Professionals. Texas Instruments and BA II Plus are trademarks of their respective owner. exclam.ai is not affiliated with, sponsored by, or endorsed by GARP or Texas Instruments. This page is an independent calculator workalike for educational use.