Calculating the After-Tax Cost of Debt

Hi community,

How you all doin’?

Quick question on volume 4 (June 2012), example 4, page 48;

How to calculate the i with a TI BAIIPlus Professional? Thx.

Thank you for your effort and I look forward to hearing from you soon.

Best wishes, Christoph

press [2ND] [FV] to clear TVM memory. enter the figures for the appropriate parameters: punch in -1025 then press [PV] punch in 1000 then press [FV] punch in 25 then press [PMT] punch in 20 then press [N] press [CPT] then [I/Y] to calculate I. learn to use the calc cuz it will save you some time. read the manual or search on you tube. someone also posted a link to atomic learning with some tutorials.

Excellent. Thank you very much.

also make sure your calculator is has the right setting for the interest else you will get the wrong ans

If I follow your instructions there is no problem with the calculation. What setting are you referring to? Thx.

nevermind are all set. gudluck on your studies

the factory setting has 12 periods per yr. since you are going to be using interest per period in your calculations for the exam, you have to change the periods per yr to 1 so that the interest rate will match the period that you enter. it seems you have that already tho. however, if you change your batteries make sure you reset it to 1 period per yr.