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EXCEL YIELDDISC FUNCTION
Excel YIELDDISC Function Introduction
The YIELDDISC function in Excel computes the yearly yield of a discounted securities.
Description of Excel YIELDDISC Function
Syntax :
=YIELDDISC( settlement, maturity, pr, redemption, [basis] )
Parameters :
- settlement – The security’s settlement date (i.e. the date that the coupon is buy).
- maturity – The security’s maturity date (i.e. the date that the coupon expires).
- pr – The price of the bond per $100 face value.
- redemption – The redemption value of the security per $100 face value.
- [basis] – An optional integer input that sets the security’s financial day count basis. Possible values include:
| Basis | Day Count Basis |
|---|---|
| 0 (or omitted) | US (NASD) 30/360 |
| 1 | actual/actual |
| 2 | actual/360 |
| 3 | actual/365 |
| 4 | European 30/360 |
Step By Step Guide of YIELDDISC Function
Example :
The Excel Yielddisc function is used to compute the yearly yield for a discounted security with a settlement date of January 1, 2017 and a maturity date of June 30, 2017. The redeeming value is $100, and the price per $100 face value is $97. The 30/360 day count basis is used in the United States (NASD): The yield on the discounted security is calculated to be 6.22 percent using the Yielddisc function.
Key Points
- Because the [base] parameter is unavailable, the method uses the default value 0 (which represents the US (NADS) 30/360 day count basis).
- The settling and maturity arguments have been entered as references to cells containing dates, as advised.
- #NUM! – Occurs if one of the following conditions is met: the issue date is the settlement date; the settlement date is the maturity date;
For the rate, pr, or [base] arguments, invalid numbers are specified.
(That is, if either rate 0; pr 0; or [base] is any number other than 0, 1, 2, 3, or 4). - #VALUE! – If either of the following criteria is met:
Any of the provided arguments are non-numeric; the provided settlement, maturity, or issuance dates are not valid Excel dates.
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