YIELDDISC: Calculating the annual yield for a discounted security


show more YIELDDISC: Calculating the annual yield for a discounted security provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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YIELDDISC: Calculating the annual yield for a discounted security

When you're offered the opportunity to invest in a discounted security, you might know everything about the investment except for its annual yield. If so, you can find that yield by using the YIELDDISC function. To use that function and to find the annual yield of an investment, you need to know the following five things. The first is the settlement date that is the date do you take possession of the investment. Next is the maturity date and that is the date that the investment comes to an end. Next is the price and that is the amount that you pay per $100 of face value for the bond.

Next is the redemption value. That's almost always going to be $100, but it doesn't have to be. Then next you have the basis and basis refers to the way that you count days in the month and a year. Basis 0, which is what we're using here, is the North American standard and it says that every month has 30 days and therefore there are 360 days in the year. If we were change to basis number 1, t...

YIELDDISC: Calculating the annual yield for a discounted security
Video duration: 2m 9s 2h 18m Intermediate

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YIELDDISC: Calculating the annual yield for a discounted security provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
Author:
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