PV - stream of rates

  • Thread starter Thread starter Kristen
  • Start date Start date
K

Kristen

I want to work out the PV of a coupon payments with a stream of rates
(YTM). Is there a way to do this?

Looking through a list of functions it has occurred to me that
FVSCHEDULE may be of help, but it is FV not PV.

Thanks for your help.

Kristen
 
Hi Kristen!

You can use FVSCHEDULE to find the time weighted average return:

=FVSCHEDULE(1,YourRates)^(1/YourTerm)-1

That can be applied to discount the value of any single payment received at
the end of the term.

With a series of payments you can use a schedule to discount each payment
back to the present value.


--
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 
Thankyou for your help

Kristen


Norman Harker said:
Hi Kristen!

You can use FVSCHEDULE to find the time weighted average return:

=FVSCHEDULE(1,YourRates)^(1/YourTerm)-1

That can be applied to discount the value of any single payment received at
the end of the term.

With a series of payments you can use a schedule to discount each payment
back to the present value.


--
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
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