Difference between revisions of "Pvgperp"

Revision as of 19:57, 25 June 2007

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

Example

Pvgperp(200, 0.08, 0.06) → 10,000

Expects: c1, rate, and growth all as numeric.

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.

Function definition: c1/(rate - growth)

Syntax: Pvgperp(c1, rate, growth : Numeric)

Library: Financial functions

More Examples and Tips: None yet.

@@ Line 2: / Line 2: @@
 ===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).
+Calculates the present value of a ''growing'' perpetuity (a bond that pays an amount ''growing'' at a constant rate in perpetuity). Note: To calculate the present value of a non-growing perpetuity use [[Pvperp]].
 ; Example