Originally Posted by

**RogueDemon** 2. (a) Find the price of the bonds or debentures given V = 100 and r, i, and n as stated.

(i) 20 years to maturity, interest at 10% p.a. to yield 11% p.a.

My attempt at a solution is as follows:

$\displaystyle P = V(1 + i)^{-n} + rV\frac{1 - (\frac{1}{1 + i})^n}{i}$

$\displaystyle = V(1 + 0.11)^{-20} + 0.10*100\frac{1 - (\frac{1}{1 + 0.11})^{20}}{0.11}$

$\displaystyle = \$92.04$.

Though apparently I'm wrong since the correct answer is listed as $\displaystyle \$91.98$. Why am I getting a different answer? Almost none of my answers are the same as those on the answer page, as I am always off by quite a few cents. The only thing I can think of is that the values given above aren't actually the values supposed to be subbed in, and that I need to perform some other calculations in order to get such values.