Functions and CALL Routines

PVP Function

Returns the present value for a periodic cash flow stream (such as a bond), with repayment of principal at maturity.

Category:

Financial

Syntax

PVP(A,c,n,K,k₀,y)

A

specifies the par value.

Range:

c

specifies the nominal per-year coupon rate, expressed as a fraction.

Range:

n

specifies the number of coupons per year.

Range:

and is an integer

K

specifies the number of remaining coupons.

Range:

and is an integer

k₀

specifies the time from the present date to the first coupon date, expressed in terms of the number of years.

Range:

y

specifies the nominal per-year yield-to-maturity, expressed as a fraction.

Range:

The PVP function is based on the relationship

[equation]

where

data _null_;
p=pvp(1000,.01,4,14,.33/2,.10);
put p;
run;

The value returned is 743.168.