Join Curt Frye for an in-depth discussion in this video YIELDMAT: Calculating the annual yield of a security that pays interest at maturity, part of Excel 2010: Financial Functions in Depth.
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 you count the number of days in a month and a year.…
- 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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