Microsoft Office Tutorials and References
In Depth Information
Examples of Functions for Bond Investors
values This is a series of cash flows that corresponds to a
schedule of payments in dates. The first payment is optional and cor-
responds to a cost or payment that occurs at the beginning of the in-
vestment. If the first value is a cost or payment, it must be a negative
value. All succeeding payments are discounted based on a 365-day
year. The series of values must contain at least one positive and one
negative value.
dates This is a schedule of payment dates that corresponds to the
cash flow payments. The first payment date indicates the beginning of
the schedule of payments. All other dates must be later than this
date, but they may occur in any order.
guess This is a number that you guess is close to the result of
The algorithm behind the XIRR function is new and more accurate in Ex-
cel 2013. Be aware that Excel 2007 and Excel 2013 might produce dif-
ferent results for some uses of XIRR.
Numbers in datesare truncated to integers. XIRR expects at least one positive
cash flow and one negative cash flow; otherwise, XIRR returns a #NUM! er-
ror. If any number in datesis not a valid date, XIRR returns a #NUM! error.
If any number in datesprecedes the starting date, XIRR returns a #NUM! er-
ror. If valuesand datescontain different numbers of values, XIRR returns
a #NUM! error. In most cases, you do not need to provide guessfor the XIRR
calculation. If it is omitted, guessis assumed to be 0.1, which is 10%.
XIRR is closely related to XNPV, the net present value function. The rate of
return calculated by XIRR is the interest rate corresponding to XNPV = 0.
Examples of Functions for Bond Investors
A bond is an I.O.U. in which you lend an amount to the issuer. The issuer pays
you periodic interest payments and at the maturity date of the bond returns
your money. Various governments issue many bonds. Bond maturities can ex-
tend anywhere from 1 day to 30 years. Many concepts and terms apply to the
bond functions.
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