I don’t have the 2013 curriculum to check, but I can tell your denominator is off. You’re not treating your spot rate as a percent; use 1 + 0.0165. Your denominator should be about 1.0333 = (1.0165)^2. Also you wrote it out as multiplying by two, but working it out you did correctly use 2 as an exponent, just be careful you don’t make that mistake on the exam.
jwn566, that was the exact issue!! I was entering the spot rate as a nonpercentage. (I should have known from the readings to treat it AS a percent (rate–doh!!), but am just getting familiar with using it). Going down exhibit 5 I am now able to come up with the same PV as in the table. Yes, I was using the “period” as an exponent but couldn’t figure out how to demonstrate that in the question–there is probably a mathematical symbol I’m not familiar with.
This was really helpful. The Fixed Income section has been going really really well for me up to this point–I think it is the best written of all the Level 1 books–and this was the first true wall I hit–always hard for me to let myself just move on when I hit walls, so now it’s full steam ahead!! Thanks again for the quick and detailed reply.