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Perpetuity Yield Formula

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Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment. Check FAQs

Y = \frac{PMT perpetuity}{PV}

Y - Perpetuity Yield?PMT_perpetuity - Perpetuity Payment?PV - Present Value?

Perpetuity Yield Example

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Here is how the Perpetuity Yield equation looks like with Values.

Here is how the Perpetuity Yield equation looks like with Units.

Here is how the Perpetuity Yield equation looks like.

0.05 = \frac{5}{100}

0.05 = \frac{5}{100}

0.05 = \frac{5}{100}

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Perpetuity Yield Solution

Follow our step by step solution on how to calculate Perpetuity Yield?

FIRST Step Consider the formula

Y = \frac{PMT perpetuity}{PV}

Next Step Substitute values of Variables

∴

Y = \frac{5}{100}

Next Step Prepare to Evaluate

∴

Y = \frac{5}{100}

LAST Step Evaluate

∴

Y = 0.05

Perpetuity Yield Formula Elements

Variables

Perpetuity Yield

Perpetuity Yield is the annual return generated from a perpetuity payment, expressed as a percentage of the initial investment.

Symbol: Y

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Perpetuity Yield

Perpetuity Payment

Perpetuity Payment is a fixed sum of money paid at regular intervals indefinitely.

Symbol: PMT_perpetuity

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Perpetuity Payment

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.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value

Other formulas in Basics of Time Value of Money category

Go Hamada Equation

β L = β UL \cdot (1 + (1 - T %) \cdot R D/E)

Go Number of Periods

n Periods = \frac{\ln (\frac{FV}{PV})}{\ln (1 + r)}

Go Doubling Time

DT = \log 10 \frac{2}{\log 10} (1 + \frac{%RoR}{100})

Go Doubling Time (Continuous Compounding)

DT CC = \frac{\ln (2)}{\frac{%RoR}{100}}

How to Evaluate Perpetuity Yield?

Perpetuity Yield evaluator uses Perpetuity Yield = Perpetuity Payment/Present Value to evaluate 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 evaluate Perpetuity Yield using this online evaluator? To use this online evaluator for Perpetuity Yield, enter Perpetuity Payment (PMT_perpetuity) & Present Value (PV) and hit the calculate button.

FAQs on Perpetuity Yield

What is the formula to find Perpetuity Yield?

The formula of Perpetuity Yield is expressed as Perpetuity Yield = Perpetuity Payment/Present Value. Here is an example- 0.05 = 5/100.

How to calculate Perpetuity Yield?

With Perpetuity Payment (PMT_perpetuity) & Present Value (PV) we can find Perpetuity Yield using the formula - Perpetuity Yield = Perpetuity Payment/Present Value.

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Perpetuity Yield Formula

Perpetuity Yield Example

Perpetuity Yield Solution

Perpetuity Yield Formula Elements

Other formulas in Basics of Time Value of Money category

How to Evaluate Perpetuity Yield?

FAQs on Perpetuity Yield

Variable Name