|Author||Topic: Time value of money question|
|First up, hey to everyone on analyst notes. I'm getting started on my CFA study and hope it'll be a rewarding one.
I've got a question regarding the Texas BA2+ calc with regards to a TVM question, it goes
Bank accepted bill has a yield of 5%, Face value $500,000, 90 days to maturity (out of 365)
The values I put in are FV=500k, I/Y 90/365x5, N=1, that gives me the correct answer.
If I put in FV=500k, I/Y=5%, N=90/365, I get the wrong answer.
Anyone knows why? Thanks a lot