# Preferred stock valuation

hi all, CFA Vol 5, Reading 60, page 277. (first 6 lines on the page) FV = 20 PMT (D) = 2 N = 12 I/Y = 4.1 CPT PV, i get 36.76, instead of the 31.01 in the text. my calculator is in the “END” mode. what am i missing, pls? i get 36.6 for the annual payment, instead of 30.84. am i confused? am i learning too much to miss something very easy?

I entered the values as given, and I get 31.01. FV = 20 PMT = 2 N = 12 I/Y = 4.1 PV = -31.0104 This is on a BA II Plus Professional.

Oyster Wrote: ------------------------------------------------------- > I entered the values as given, and I get 31.01. > > FV = 20 > PMT = 2 > N = 12 > I/Y = 4.1 > PV = -31.0104 > > This is on a BA II Plus Professional. I concur… Got the right answer.

this is quite “scary”. i just used BA II (NOT PROFESSIONAL) and got 31.01 but my BA II PROFESSIONAL still gives me 36.76! i went as far as placing the 2 calculators side by side and putting the values in the 2 calculators, one after the other! still, i got different figures. what is wrong with my BA II PROFESSIONAL, pls?

thanks a lot! i reset my BA II Plus professional; it worked for me this time. but i still can’t figure out what happened to the “professional”. can its settings change just like that and thus cause such a trouble? i’m just imagining the kind of “mess” this would create if it happened on june 4 (between 9am and 5pm)!

It’s the P/Y setting on the calculator. 2nd > P/Y > 1 > Enter Your calculator is decreasing your periodic interest value by half, so it is using P/Y=2 instead of P/Y=1. This happened to me in my Stalla live-class and I thought I was going to fail the Quant section…

you’re right! i really changed the p/y setting to solve a problem (a few days ago). i hope by resetting the functions, i’m all “set”. thanks a lot!