return the net present value of future cash flows

Finance[NetPresentValue] - return the net present value of future cash flows

	Calling Sequence
	NetPresentValue(instrument) NetPresentValue(cashflows, discountrate, opts)

Parameters

instrument	-	cash flow swap or an interest rate swap; financial instrument
cashflows	-	data structure created using the SimpleCashFlow constructor or a list of such data structures; cash flows
discountrate	-	non-negative constant or a yield term structure; discount rate
opts	-	equations of the form option = value where option is one of referencedate or daycounter; specify options for the NetPresentValue command

Description

•	The NetPresentValue(instrument) calling sequence returns the net present value of the given instrument. The parameter instrument in this case can be either a cash flow swap or an interest rate swap. For bonds the net present value is the same as the dirty price (see DirtyPrice).

•	The NetPresentValue(cashflows, discountrate, opts) calling sequence returns the net present value for the future cash flows discounted with respect to the given discount rate.

Options

•	daycounter = a string containing a date specification in a format recognized by ParseDate or a date data structure -- This option specifies a day counter or day counting convention.

•	referencedate = a string containing a date specification in a format recognized by ParseDate or a date data structure -- This option specifies the reference date, that is, the date when the discount factor is 1. By default this is set to the global evaluation date.

Compatibility

•	The Finance[NetPresentValue] command was introduced in Maple 15.

•	For more information on Maple 15 changes, see Updates in Maple 15.

Examples

First set the global evaluation date.

(1)

Calculate the net present value of 100 dollars to be paid on January 2, 2007.

(2)

(3)

(4)

(5)

(6)

(7)

Here is another example.

(8)

(9)

(10)

(11)

(12)

(13)

Compute the value of this cash flow on January 1, 2005.

(14)

Here is another way to compute this. First, compute the accrued interest.

(15)

This is the value to be received on January 1, 2010. Discount this value using the discount rate.

(16)

	See Also
	Finance[CompoundFactor], Finance[DiscountFactor], Finance[FixedRateCoupon], Finance[InArrearIndexedCoupon], Finance[ParCoupon], Finance[SimpleCashFlow], Finance[UpFrontIndexedCoupon], Finance[ZeroCurve]