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Perpetuity Yield Calculator

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Basics of Time Value of Money Future value Present Value

✖Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.ⓘ Perpetuity Payment [PMT_perpetuity]			+10% -10%
✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value [PV]			+10% -10%

✖Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment.ⓘ Perpetuity Yield [Y]

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Perpetuity Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Perpetuity Yield = Perpetuity Payment/Present Value
Y = PMT_perpetuity/PV
This formula uses 3 Variables

Variables Used

Perpetuity Yield - Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment.
Perpetuity Payment - Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.
Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

STEP 1: Convert Input(s) to Base Unit

Perpetuity Payment: 5 --> No Conversion Required
Present Value: 100 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

Y = PMT_perpetuity/PV --> 5/100

Evaluating ... ...

Y = 0.05

STEP 3: Convert Result to Output's Unit

0.05 --> No Conversion Required

FINAL ANSWER

0.05 <-- Perpetuity Yield

(Calculation completed in 00.020 seconds)

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Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< Basics of Time Value of Money Calculators

Number of Periods

LaTeX Go Number of Periods = ln(Future Value/Present Value)/ln(1+Rate per Period)

Hamada Equation

LaTeX Go Leveraged Beta = Unleveraged Beta*(1+(1-Tax Rate)*Debt to Equity (D/E))

Doubling Time

LaTeX Go Doubling Time = log10(2)/log10(1+Rate of Return/100)

Doubling Time (Continuous Compounding)

LaTeX Go Doubling Time Continuous Compounding = ln(2)/(Rate of Return/100)

Perpetuity Yield Formula

LaTeX Go

Perpetuity Yield = Perpetuity Payment/Present Value
Y = PMT_perpetuity/PV

What is Perpetuity Yield?

Perpetuity yield is a financial metric that measures the annual rate of return generated by a perpetuity payment in relation to the initial investment. It provides investors with valuable insights into the income-generating potential of perpetuities, which are cash flows that continue indefinitely into the future at regular intervals. The perpetuity yield is expressed as a percentage and is calculated by dividing the annual perpetuity payment by the initial investment and then multiplying by 100%.

How to Calculate Perpetuity Yield?

Perpetuity Yield calculator uses Perpetuity Yield = Perpetuity Payment/Present Value to calculate the Perpetuity Yield, The Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment. Perpetuity Yield is denoted by Y symbol.

How to calculate Perpetuity Yield using this online calculator? To use this online calculator for Perpetuity Yield, enter Perpetuity Payment (PMT_perpetuity) & Present Value (PV) and hit the calculate button. Here is how the Perpetuity Yield calculation can be explained with given input values -> 0.05 = 5/100.

FAQ

What is Perpetuity Yield?

The Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment and is represented as Y = PMT_perpetuity/PV or Perpetuity Yield = Perpetuity Payment/Present Value. Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely & The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

How to calculate Perpetuity Yield?

The Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment is calculated using Perpetuity Yield = Perpetuity Payment/Present Value. To calculate Perpetuity Yield, you need Perpetuity Payment (PMT_perpetuity) & Present Value (PV). With our tool, you need to enter the respective value for Perpetuity Payment & Present Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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