YIELDDISC

Formulas / YIELDDISC
Calculate the annual yield for a discounted security.
=YIELDDISC(settlement, maturity, pr, redemption, [basis])
  • Settlement - required, date of the security's settlement
  • Maturity - required, date of the security's maturity
  • Pr - required, price of the security per $100 of face value
  • Redemption - required, redemption value per $100 face value
  • [Basis] - [OPTIONAL], financial day count basis used by security

Examples

  • =YIELDDISC(C7,C8,C5,C6,C9)

    The YIELDDISC function can be used to calculate the discount rate of an investment given the settlement date, maturity date, rate, pr and redemption value. For example, where C7 is the settlement date, C8 is the maturity date, C5 is the rate, C6 is the pr and C9 is the redemption value, returns 0.03264023 which, or 3.26% when formatted with the percentage number format.

  • =YIELDDISC(5/2/2021, 8/2/2021, 0.025, 100, 1000)

    The YIELDDISC function can be used to find the discount rate of a bond given the settlement date, maturity date, rate, pr and redemption value. For example, say a bond has a settlement date of 5/2/2021, a maturity date of 8/2/2021, a rate of 0.025, a pr of 100 and a redemption value of 1000. To calculate the discount rate of this bond, the YIELDDISC function returns 0.0390625, or 3.906% when formatted with the percentage number format.

  • =YIELDDISC(7/25/2022, 10/25/2022

    The YIELDDISC function can also be used to calculate the discount rate of a loan given the settlement date, maturity date, rate, pr and redemption value. For example, say a loan has a settlement date of 7/25/2022, a maturity date of 10/25/2022, a rate of 0.0175, a pr of 100 and a redemption value of 1000. To calculate the discount rate of this loan, the YIELDDISC function returns 0.0263475, or 2.635% when formatted with the percentage number format.

Summary

The YIELDDISC function calculates the annual yield of a security which is discounted by taking into account the settlement date, maturity date, price, redemption value, and basis.

  • The YIELDDISC function in Sourcetable calculates the annual yield of a discounted security and takes the basis argument as an input to determine how days are counted in the calculation.


Frequently Asked Questions

What is YIELDDISC function?
The YIELDDISC function is used to calculate the annual yield for a discounted security.
What are the arguments required for the YIELDDISC function?
The arguments required for the YIELDDISC function are:
  • Settlement date
  • Maturity date
  • Price
  • Redemption value
  • Basis
What is the purpose of YIELDDISC function?
The YIELDDISC function is used to calculate the annual yield for a discounted security.
What does the output of YIELDDISC function indicate?
The output of the YIELDDISC function indicates the annual yield of a discounted security.

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