标题: Stupid problem with BA II Plus [打印本页] 作者: richer 时间: 2011-7-11 18:42 标题: Stupid problem with BA II Plus
I'm doing EOC question 12, reading 45,on page 86 of the Corp. Finance book from CFAI.
I don't know what the heck I'm doing wrong, but my calculator gives me a value of 4,896,931.5 for the market value of the debt instead of 7,999,688.
I'm entering N=10 FV=10,000,000 PMT=400,000 and I/Y=13.65. I'm not in BGN mode, P/Y is set to 1... I know it must be some stupid detail I'm missing because I'm tired and just can't think straight.作者: Jolyn 时间: 2011-7-11 18:42
Are you sure it's compounding yearly? If not, you have to adjust the N and Interest.作者: chetan86 时间: 2011-7-11 18:42
Thanks. I thought of that after opening this thread (after hours) and, of course, it works.
The thing is that I would have sworn I'd done this kind of problems before without dividing the annual rate, and the answer from the CFAI book states that you must enter I/Y=13.65, so just couldn't see it.
