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Calculator Solution

BondEx3.gif (1750 bytes)

Present Value, P

500 1.005 84

Parentheses are not needed because exponentiation has precedence over multiplication.

Interest, I

500 328.87

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:

5001.00584

500328.87