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values for calculator

a 6 year amortizing security par value 100 coupon 4% ,expected cash flow per year 4% coupon + some amount say 12 total expected cf = 16. discount rate 5%. i am able to solve correctly using the formula 16/1.05^1....... and so on.

what values do i put in the calculator for the same?unable to solve using calc.

based on info given:

n = 6
FV = (100)
PMT = (16)
YTM = 5

CPT PV

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nope i am not getting the answer.have tried it already

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what's the answer btw? I solved it and could explain, just making sure I'll be explaining the right thing

Btw, if you use Excel it might be easier IMHO

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its a hypothetical Q. havent solved it.its similar to a prob in CFAI text. i could solve it using the formula but not the calculator. wanted to know what value to put in which field. and excel isn't allowed in exam so not using

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Based on info provided, only way to do it was what I told you ..

I guess you are doing something wrong with formula: dividing last factor by n = 7 not 6

Show me excel work to know whats the problem

Omar

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confused2010 Wrote:
-------------------------------------------------------
> nope i am not getting the answer.have tried it
> already


Does this mean you are getting an error or an incorrect answer?
If you compute like Omar said,
n=6 FV=-100 PMT=-16 i=5 you get PV=155.83261

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I'm not sure if posting the actual text is ok or not, but you could tell us the book and page, some of us have the 2010 material, we took level 1 in June ;)

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page 402,volume 5, reading 64, practice problem 1 part B.

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Btw, I think you wrote you'll study FI and Quant together? Have you finished readings 5 and 6 from Quant?

If not, it might be a good idea to spend one or two days on those and come back to FI afterwards, this type of questions will come more naturally to you once you've read that.

FI can be done before Quant, but time value of money and discounted cash applications are used throughout FI valuation, if this is new to you reading up on these - even in the CFAI books () they are less than 100 pages - will help in my opinion.

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