price slide, page-141

XavierX2

I'm confused by your calcs. I've done them on my HP and get different results. Obviously I've missed something.

In col 1, with n=100, I say the PV = 33.27. To prove this, when n=1 & not 100, PV = 4.0212. 4.0212*1.1375 = 4.57.

When adding a FV of $60, it seems the HP figures are correct and the Excel figures make no sense. Any thoughts?

This is really preamble to my main point. A more realistic scenario may be that after 6 months, PXUPA holders get $60 + 1 x distribution, which has a PV of $56.77 if discounted at 27.50% pa, and increases as the discount rate lowers.

We both understand that your scenario of nil coupon and nil redemption is hypothetical. I look forward to your response.



i (Rate) 13.75 13.75 13.75 13.75
n (Nper) 100 1 100 1
pmt 4.575 4.575 4.575 4.575
fv 0 0 60 60

Excel
PV -0.3327 -0.3102 -0.3327 -4.3780

HP
PV -33.2726 -4.0212 -33.2728 -56.7692