XavierX2I'm confused by your calcs. I've done them on my HP and...

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