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k1enneth
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HP 10bii Malfunction?

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HP 10ii Malfunction
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Simple yield to maturity bond calculation. 5 years=N,  60$ annual payment=P,   $1000=FV,  selling at discount of $915.48=PV,  so enter -915.48 as PV....then solve...enter for I/YR...=97.49 which isn't even close to the correct answer of 8.12%.

sorry to be a bother on this simple issue but I do not see my error on any entry. What could I have mis-entered? Or is it a malfunction? Thanks. 

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David_M
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You didn't mention anything about your current P/YR (periods per year) setting, and I believe that's the issue here.  The default setting is 12, which is inappropriate for this scenario.  Change your P/YR to 1, then solve for the annual interest rate again.

 

Note that setting the P/YR variable can be done by typing in the new value (1 for this problem), then pressing down-shift PMT.  A similarly-labeled function on the down-shifted N key is for an entirely different purpose (computing N based on the number of years given) and isn't appropriate for this situation.

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David_M
Level 6
143 142 29 62
Message 2 of 3
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HP Recommended

You didn't mention anything about your current P/YR (periods per year) setting, and I believe that's the issue here.  The default setting is 12, which is inappropriate for this scenario.  Change your P/YR to 1, then solve for the annual interest rate again.

 

Note that setting the P/YR variable can be done by typing in the new value (1 for this problem), then pressing down-shift PMT.  A similarly-labeled function on the down-shifted N key is for an entirely different purpose (computing N based on the number of years given) and isn't appropriate for this situation.

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k1enneth
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Thanks David M!! yep, the settings needed to be updated under the PMT/P YR button. All the best! solution matches.

 

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