# Contract Crediting Rate Formula

Hi,
I'm stuck on backing into the gross crediting rate (1.93%). I have all the variables and the formula but I can't come up with the answer that is provided. I'm trying to find the gross crediting rate of a contract with the formula
Gross crediting rate = (MV/CV)^(1/D)*(1+AYTM)-1;
MV = market value
CV = contract value
D = duration
AYTM = annualized yield to maturity = (1+ YTM/2)^2-1
Inputs

 Market Value 48,000,000.00 Contract Value 50,000,000.00 MV/CV 96.0% Duration 3.0 years Yield to Maturity 3.30% Annualized Yield to Maturity 3.33% Gross Crediting Rate 1.93%

If I step through the formula
(MV/CV) = .96
(1/D)=.33  (.96)^.33 =.9866
(1+AYTM) = (1+.333) = 1.333
(.9866)* 1.333=1.31
1.31 - 1= .31
I'm not getting something right where I'm coming up .31 and the solution has 1.93; any suggestions?
The other part I'm stuck on is how AYTM=3.33 when (1+.33\)^2-1=.7689

I appreciate the input!

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• Pasta157