Microsoft Office Tutorials and References
In Depth Information
YIELD
The discount rate applied to the cash flows.
RATE
A series of cash flows that corresponds to a series of dates.
VALUES
A series of payment dates that corresponds to a series of payments.
DATES
XNPV is calculated as follows:
YIELD
Based on a yield that pays periodic interest, YIELD returns the yield of the security.
=YIELD(settlement,maturity,rate,pr,redemption,frequency,basis)
The YIELD function returns the yield on a security that pays on period interest. This is a
function found only if the Analysis Toolpak is installed. It must be turned on using the Add-Ins
command from the Tools menu. In Figure 6.41, for example, the settlement date of the security is
11/15/1999 and the maturity date is 2/9/2009. The rate is 5.8% and the security’s price per $100
face value is $98. The frequency is semiannually, and the basis is 30/360(4), resulting with 6.08%.
The security’s settlement date. This is the date after the issue date
when the security is traded to the buyer.
SETTLEMENT
The security’s maturity date—when the security expires.
MATURITY
The interest rate of the security.
RATE
The price of the security.
PR
The redemption value of the security per $100 face value.
REDEMPTION
The number of the payments per year—Annual = 1; Semiannual = 2;
Quarterly = 4.
FREQUENCY
The day count basis to use.
BASIS
YIELD can be calculated as:
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