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I think of the question conceptually in my head as:

What is the value, at the start, of a financial instrument that will pay you USD50,000 (USD1,000,000 * 5%) every year for 6 years then repay you USD1,000,000 at the end?

So the initial carrying value can be calculated with your BA II Plus using NPV.

With your BA II Plus, enter:

**NPV entry** |
**BA II Plus keystrokes** |
**Question parameter** |

N = 6 |
[6] [N] |
6 year bond = 6 payment periods |

I/Y = 3 |
[3] [I/Y] |
3% market rate |

PMT = 50,000 |
[50000] [PMT] |
USD50,000 payment per year (5% of USD1M) |

FV = 1,000,000 |
[1000000] [FV] |
USD1,000,000 future value (at end of term) |

Compute PV |
[CPT] [PV] |
Given all other parameters, compute PV |

The calculator should show -1,108,343.83.

The result is negative because the cashflow is opposite to the payments you entered. In my example I set PMT and FV as positive (cashflow to me) so PV will be negative (cashflow from me to pay for the bond).

Which provider is this? They really should be providing an explanation with keystrokes.