PV - stream of rates

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
 
N

Norman Harker

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
[email protected]
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 
K

Kristen

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
[email protected]
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
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