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).
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 library functions

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