PVP Function
Returns the present value for a periodic cash flow
stream (such as a bond), with repayment of principal at maturity.
Syntax
Required Arguments
c
specifies the nominal
peryear coupon rate, expressed as a fraction.
n
specifies the number
of coupons per year.
Range:
$n>0$ and is an integer
K
specifies the number
of remaining coupons.
Range:
$K>0$ and is an integer
k_{0}
specifies the time
from the present date to the first coupon date, expressed in terms
of the number of years.
Range:
$0<{k}_{0}\le \frac{1}{n}$
y
specifies the nominal
peryear yieldtomaturity, expressed as a fraction.
Details
The PVP function is
based on the relationship
$\begin{array}{c}P=\underset{k=1}{\overset{K}{\Sigma}}\frac{c\left(k\right)}{{(1+\frac{y}{n})}^{{t}_{k}}}\hfill \end{array}$
The following relationships
apply to the preceding equation:


$c\left(k\right)=\frac{c}{n}A\phantom{\rule{0.265em}{0ex}}\phantom{\rule{0.212em}{0ex}}\phantom{\rule{0.212em}{0ex}}\phantom{\rule{0.212em}{0ex}}\phantom{\rule{0.212em}{0ex}}for\phantom{\rule{0.212em}{0ex}}\phantom{\rule{0.212em}{0ex}}k=1,\dots ,K1$

$c\left(K\right)=(1+\frac{c}{n})A$
Example
data _null_;
p=pvp(1000,.01,4,14,.33/2,.10);
put p;
run;
The value that is returned is 743.168.