yielddisc - Annual Yield for a Discounted Security...

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Annual Yield for a Discounted Security – YIELDDISC The annual yield for a discounted security can be calculated using Excel’s YIELDDISC function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. This function is included in the Analysis ToolPak. Syntax =YIELDDISC(settlement,maturity,price,redemption,basis) Settlement – the date after the issue date when the security is traded to the buyer Maturity – maturity date of the security Price – security’s price Redemption – value of the security at redemption Basis – day count basis of the security. Defaults to 0 if omitted. 0 = 30/360 (US NASD) 1 = actual/actual 2 = actual/360 3 = actual/365 4 = European 30/365 General Example The following general example shows how the YIELDDISC function can be used. Notice that the YIELDDISC function appears in the formula bar. 1
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Using the YIELDDISC Function in a Spreadsheet To calculate the annual yield for a discounted security, create a spreadsheet by following Steps 1 to 7. Or, to use the YIELDDISC function right away, open the YIELDDISC worksheet in the Excel Functions Templates workbook. All fields have been formatted for you (currency, percentage, number of decimals displayed). Step 1
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yielddisc - Annual Yield for a Discounted Security...

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