YIELDMAT: Calculating the annual yield of a security that pays interest at maturity


show more YIELDMAT: Calculating the annual yield of a security that pays interest at maturity 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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YIELDMAT: Calculating the annual yield of a security that pays interest at maturity

Some bonds pay interest throughout the bond's life, while others pay interest when the bond matures. If you received the accumulated interests in one payment at maturity, you can use the YIELDMAT function to find the bond's yield. To do that you need to know the following six things. First is the settlement date, which is the date that you take possession of the investment. Next is the maturity date and that is the last day of the investment. In other words the day when the principle you've invested plus any interest or other monies due will be paid to you.

Then next is the issue date and this is the date that the security was first made available for sale. Then there's the rate, which is the discount rate of the investment, the rate at which your accumulate interest. Then there is the price and price is expressed in terms of price per $100 a face value of the bond and in this case, we've set the price to $100. Then finally, we have basis. Basis refers to the way that yo...

YIELDMAT: Calculating the annual yield of a security that pays interest at maturity
Video duration: 2m 17s 2h 18m Intermediate

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YIELDMAT: Calculating the annual yield of a security that pays interest at maturity 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
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