Every time I try and calculate this problem something comes up wrong. Either from working it out by hand or using my BA II plus, I cannot get the answer shown below. Am I wrong or is this book answer off?
500 bonds at $1,000 with a stated rate of 5%.
The present value $500000,
payable in 20 six-month periods at a market rate of 5% is $305,135.47. But I cannot come up with that number, using a BA II plus caculator or doing the calculations by hand.
The present value of 12,500 of intrest (500000 x 5% interest / 2 payments per year) paid for 20 six-months periods at a market rate of 5% is 194864.53