Difference between revisions of "Documentation/How Tos/Calc: YIELDDISC function"
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<tt>'''YIELDDISC("2008-02-15"; "2008-11-30"; 97.63; 100; 1)'''</tt> | <tt>'''YIELDDISC("2008-02-15"; "2008-11-30"; 97.63; 100; 1)'''</tt> | ||
: returns approximately <tt>'''0.0307'''</tt> or 3.07%. You purchase and settle a bond for $976.30 on 15 February 2008; the bond will mature on 30 November 2008, yielding its face value of $1000. The yield is about 3% using the basis 1 calendar system. | : returns approximately <tt>'''0.0307'''</tt> or 3.07%. You purchase and settle a bond for $976.30 on 15 February 2008; the bond will mature on 30 November 2008, yielding its face value of $1000. The yield is about 3% using the basis 1 calendar system. | ||
| + | |||
| + | === Issues: === | ||
| + | * There are (rare) circumstances when the results from Calc and Excel differ, due to the internal use of <tt>'''YEARFRAC'''</tt>. | ||
| + | * The formula uses takes no account of the compounding of interest. It may be most suitable when used with periods up to one year. | ||
{{Documentation/SeeAlso| | {{Documentation/SeeAlso| | ||
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* [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] | ||
* [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | ||
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Revision as of 08:53, 3 March 2009
YIELDDISC
Calculates the yield for a non-interest paying discounted bond.
Syntax:
YIELDDISC(settlementdate; maturitydate; price; redemptionvalue; basis)
- settlementdate: the settlement (purchase) date of the bond.
- maturitydate: the maturity (redemption) date of the bond.
- price: the price of the security, per 100 par value.
- redemptionvalue: the redemption value of the bond, per 100 par value.
- basis: is the calendar system to use. Defaults to 0 if omitted.
- 0 - US method (NASD), 12 months of 30 days each
- 1 - Actual number of days in months, actual number of days in year
- 2 - Actual number of days in month, year has 360 days
- 3 - Actual number of days in month, year has 365 days
- 4 - European method, 12 months of 30 days each
- YIELDDISC calculates the annual (uncompounded) yield for a bond which pays no interest (a 'pure discount instrument' or 'discounted zero coupon bond'). It returns:
- (1 - price/redemptionvalue) / YEARFRAC(settlementdate; maturitydate; basis).
- The companion function PRICEDISC has a 'discount rate' parameter. Note that this is not the same as 'yield', although the two are related, and generally close.
Example:
YIELDDISC("2008-02-15"; "2008-11-30"; 97.63; 100; 1)
- returns approximately 0.0307 or 3.07%. You purchase and settle a bond for $976.30 on 15 February 2008; the bond will mature on 30 November 2008, yielding its face value of $1000. The yield is about 3% using the basis 1 calendar system.
Issues:
- There are (rare) circumstances when the results from Calc and Excel differ, due to the internal use of YEARFRAC.
- The formula uses takes no account of the compounding of interest. It may be most suitable when used with periods up to one year.
