NPV {DescTools}

Short Selection of Financial Mathematical Functions

Description

Calculate the one period returns, the net present value (NPV()), the internal rate of return (IRR()) of a sequence of payments. NPVFixBond() returns the netpresent value for a fixed-rate bond, YTM() the yield to maturity for a bond.

Usage

OPR(K, D = NULL, log = FALSE)
NPV(i, cf, t = seq(along = cf) - 1)
IRR(cf, t = seq(along = cf) - 1, interval = c(-1.5, 1.5), ...)

NPVFixBond(i, Co, RV, n)
YTM(Co, PP, RV, n)

Arguments

i

the interest rate

cf

numeric vector with the payments

t

periods

K

the capital at time t

D

dividend at time t

log

logical, determining if the simple returns (default) or log returns are to be calculated.

interval

a vector containing the end-points of the interval to be searched for the root in the function IRR.

Co

coupon payments of a fixed-rate bond

PP

purchase price for a fixed-rate bond

RV

redemption value

n

the term of the bond, total number of periods

...

the dots are passed to the UnirootAll function in IRR

Details

The one period returns are calculated as

r_t = \frac{D_t+K_t-K_t-1}{K_t-1}

Value

a numeric value

Author(s)

Andri Signorell <[e-mail]>

See Also

Gmean

Examples

# one root
IRR(cf <- c(-900, -250+450-90, 460-100, 500-120, 550-140))
# several IRR solutions
IRR(cf = c(-100, 500, -600))
# no solution
IRR(cf = c(-100, 400, -600))
# negative and huge solution
IRR(cf = c(-100, 1000, -600), interval = c(-1.5, 1000))