YIELDDISC Function Explained
The YIELDDISC Function in Microsoft Excel calculates the annual yield for a discounted security. It takes three arguments: settlement, maturity, and price. The settlement argument is the security’s settlement date, the maturity argument is the security’s maturity date, and the price argument is the security’s price per $100 face value. The function returns the annual yield for the discounted security.
YIELDDISC Function Syntax
YIELDDISC(settlement, maturity, pr, redemption, [basis])
- settlement: The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- maturity: The security’s maturity date. The maturity date is the date when the security expires.
- pr: The security’s price per $100 face value.
- redemption: The security’s redemption value per $100 face value.
- [basis]: The type of day count basis to use. The default is 0 (or omitted), which is US (NASD) 30/360.