Difference between revisions of "Pvgperp"
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===Function Pvgperp(c1, rate, growth)=== | ===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]]. | + | Calculates the present value of a ''growing'' perpetuity (a bond that pays an amount ''growing'' at a constant rate in perpetuity). <br>'''Note:''' To calculate the present value of a non-growing perpetuity use [[Pvperp]]. |
; Example | ; Example |
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.
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