Join Curt Frye for an in-depth discussion in this video YIELDDISC: Calculating the annual yield for a discounted security, part of Excel 2010: Financial Functions in Depth.
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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, then we would have actual days.…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
Excel 2010: Data Validation in Depthwith Dennis Taylor59m 45s Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
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