HP 12c bond question somebody, something, resources, following

Spongebob

Hi,

I have a problem with my HP 12c for Interest on bonds:

for the following problem on bonds:

FV 1000
PV (1012.75)
PMT 38.73
N 23.5
CPT for I

the answer on the test Bank (allen resources) is 3.792 but my HP 12c gives me 3.6709 why?

Do I input something wrong? Can somebody please help? I am pretty sure it is because the N is a dec. number because all the other problems with a round N are fine. Please help!

bluejazzy

This is a well-documented issue in Schweser and CFAI. The HP12C rounds up your N value when there is a decimal. CFAI is aware of this issue and no problem on the exam will nitpick on your choice of N.


FROM THE CFAI website FAQ:
Should I be concerned that the HP 12C automatically rounds up when computing the time required to accumulate a given future value?

No. CFA Institute is aware that the HP 12C rounds up when computing the time required to accumulate a certain sum. We have taken that into consideration in the creation of questions and in the grading process.

lc26mizzou

Thank you very much for your answer!