Pvgperp


Function Pvgperp(c1, rate, growth)

Calculates the present value of a growing perpetuity (a bond that pays an amount growing at a constant rate in perpetuity).

To calculate the present value of a non-growing perpetuity use Pvperp.

Syntax:

Pvgperp(c1, rate, growth: Numeric)

Parameters:

«c1»
the coupon payment amount in year 1
«rate»
the interest rate per time period
«growth»
the growth rate per time period

Function definition:

c1/(rate - growth)

Library

Financial library functions (Financial Library.ana)

Use File → Add Library... to add this library

Example

Pvgperp(200, 0.08, 0.06) → 10,000

See Also

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