Hi, I have a problem with my HP 12c for Interest on bonds: for the following problem on bonds: FV 1000 PV (1012.75) PMT 38.73 N 23.5 CPT for I the answer on the test Bank (allen resources) is 3.792 but my HP 12c gives me 3.6709 why? Do I input something wrong? Can somebody please help? I am pretty sure it is because the N is a dec. number because all the other problems with a round N are fine. Please help!
This is a well-documented issue in Schweser and CFAI. The HP12C rounds up your N value when there is a decimal. CFAI is aware of this issue and no problem on the exam will nitpick on your choice of N. FROM THE CFAI website FAQ: Should I be concerned that the HP 12C automatically rounds up when computing the time required to accumulate a given future value? No. CFA Institute is aware that the HP 12C rounds up when computing the time required to accumulate a certain sum. We have taken that into consideration in the creation of questions and in the grading process.
Thank you very much for your answer!