PVP

PVP

Returns the present value for a periodic cashflow stream, such as a bond

Category: Financial

Syntax

PVP(A,c,n,K,k₀,y)

A

the par value.

Range:

A > 0

c

the nominal per-period coupon rate, expressed as a fraction.

Range:

0 < c < 1

n

the number of coupons per period.

Range:

n > 0 and is an integer

K

the number of remaining coupons.

Range:

K > 0 and is an integer

k₀

the time from present to the first coupon date, expressed in terms of the number of periods.

Range:

0 < k₀< 1/n

y

the nomimal per-period yield-to-maturity, expressed as a fraction.

Range:

y > 0

The PVP function is based on the relationship

[IMAGE]

where

[IMAGE]

[IMAGE] for k=1, ..., K-1

[IMAGE]

p=pvp(1000,1/100,4,14,.33/2,.10);

The value returned is 743.168.