Difference between revisions of "Pvgperp"

Revision as of 19:22, 25 June 2007

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

Pvgperp(200, 0.08, 0.06) → 10,000

Parameters: c1 is the coupon payment amount in year 1;
rate is the interest rate per time period;
growth is the growth rate per time period.

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-[[Category:Doc Status D]] <!-- For Lumina use, do not change -->
+[[Category:Doc Status C]] <!-- For Lumina use, do not change -->
+===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).
+; Example
+ Pvgperp(200, 0.08, 0.06) &rarr; 10,000
+; Expects: '''c1''', '''rate''', and '''growth''' all as numeric.
+; Parameters: '''c1''' is the coupon payment amount in year 1;<br>'''rate''' is the interest rate per time period;<br>'''growth''' is the growth rate per time period.
+; Function definition: c1/(rate - growth)
+; [[Syntax]]: Costcapme(rOpp,rD,nTx,dvr:Numeric)
+; Library: [[Financial functions]]
+; More Examples and Tips:  ''None yet.''