Difference between revisions of "Documentation/How Tos/Calc: YIELDDISC function"
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: <tt>'''YIELDDISC'''</tt> calculates the annual (uncompounded) yield for a bond which pays no interest (a 'pure discount instrument' or 'discounted zero coupon bond'). It returns: | : <tt>'''YIELDDISC'''</tt> calculates the annual (uncompounded) yield for a bond which pays no interest (a 'pure discount instrument' or 'discounted zero coupon bond'). It returns: | ||
| − | :: ( | + | :: (<tt>'''redemptionvalue'''</tt> / <tt>'''price'''</tt> - 1) / <tt>'''YEARFRAC(settlementdate; maturitydate; basis)'''</tt>. |
: The companion function <tt>'''PRICEDISC'''</tt> has a 'discount rate' parameter. Note that this is <u>not</u> the same as 'yield', although the two are related, and generally close. | : The companion function <tt>'''PRICEDISC'''</tt> has a 'discount rate' parameter. Note that this is <u>not</u> the same as 'yield', although the two are related, and generally close. | ||
| Line 27: | Line 27: | ||
: 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. | |
| − | + | ||
| − | + | ||
| − | + | ||
| − | + | {{SeeAlso|EN| | |
| + | * [[Documentation/How_Tos/Calc: PRICEDISC function|PRICEDISC]] | ||
| + | * [[Documentation/How_Tos/Calc: YIELD function|YIELD]] | ||
| + | * [[Documentation/How_Tos/Calc: PRICE function|PRICE]] | ||
| + | * [[Documentation/How_Tos/Calc: PRICEMAT function|PRICEMAT]] | ||
| + | * [[Documentation/How_Tos/Calc: DISC function|DISC]] | ||
| − | [[Documentation/How_Tos/Calc: | + | * [[Documentation/How_Tos/Calc: Derivation of Financial Formulas|Derivation of Financial Formulas]] |
| − | [[Documentation/How_Tos/Calc: Financial | + | * [[Documentation/How_Tos/Calc: Date & Time functions#Financial date systems|Financial date systems]] |
| − | + | * [[Documentation/How_Tos/Calc: Financial functions|Financial functions]] | |
| − | * | + | |
| − | * | + | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] |
| + | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | ||
| + | [[Category: Documentation/Reference/Calc/Financial functions]] | ||
Latest revision as of 09:29, 17 July 2018
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:
- (redemptionvalue / price - 1) / 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.
See Also
