Understanding Current Value Calculations for Investments and Bonds

When calculating the current value of a bond or an investment, we typically use the present value (PV) of future cash flows. The term 'CV0' refers to the current value at time 0, which is essentially the present value of the investment. On the other hand, 'CV(3/12)' would indicate the current value after three months, or one quarter, of a year on a non-coupon payment date.

If you are tasked with determining the current value at time 0 (CV0), it is recommended to utilize 'CV0' itself for the calculation. CV0 directly signifies the value of the investment at the current time without any additional time value adjustments that might be included in 'CV(3/12)'. The latter considers the passage of three months in time and incorporates related modifications.

Therefore, for the specific scenario you provided where you have 2 CV's, one at CV0 (where coupon is involved in the equation) and one at CV(3/12) (on a non-coupon payment date), the appropriate choice is to use CV0 for calculating the current value at time 0. This ensures accuracy and consistency in valuing the investment or bond without factoring in additional time-related considerations that are present in CV(3/12).