Returns the present value for a periodic cash flow stream with repayment of principal at maturity, such as a bond
Category: Financial
PVP ( A,c,n,K,k ,y )
A
specifies the par value.
Range: A > 0
c
specifies the nominal per-year coupon rate, expressed as a fraction.
Range: ‰ c < 1
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
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: y > 0
The PVP function is based on the relationship
where
data _null_; p=pvp(1000,.01,4,14,.33/2,.10); put p; run;
The value returned is 743.168.