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Calculator Solution

BondEx1.gif (1781 bytes)

Present Value, P

500 1.005 66

Parentheses are not needed because exponentiation has precedence over multiplication.

Interest, I

500 359.76

Note: These solutions are shown for a TI-83 Plus calculator. On some other calculators (including the Windows scientific calculator), you'll need the following keystrokes:

5001.00566

500359.76