Manuals/calci/YIELDDISC

YIELDDISC (Settlement,Maturity,Price,Redemption,Basis)

• where $Settlement$ is security's settlement date (a date when coupon or a bond is purchased),
• $Maturity$ is security's maturity date (a date when coupon or a bond expires),
• $Price$ is the price per $100 face value,
• $Redemption$ is security's redemption value per $100 face value,
• $Basis$ is the type of day count basis to use.
  • YIELDDISC(), returns the annual yield for a discounted security; for example, a Treasury bill.

Description

YIELDDISC (Settlement,Maturity,Price,Redemption,Basis)

• YIELDDISC referred to as 'Discount Yield' is the measure of security's percentage return.

Formula:-

$DiscountYield={\frac {(parvalue-price)}{parvalue}}*{\frac {360}{daystomaturity}}$

• $Settlement$ and $Maturity$ dates should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
• If $Settlement$ date = $Maturity$ date, Calci displays #N/A error message.
• $Price$ and $Redemption$ values must be greater than zero, else Calci displays #N/A error message.
• $Basis$ value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of $Basis$ values:

Basis	Description
0	US (NASD) 30/360
1	Actual/actual
2	Actual/360
3	Actual/365
4	European 30/360

• If $Basis$ value is other than 0 to 4, Calci displays #N/A error message.

Examples

YIELDDISC (Settlement,Maturity,Price,Redemption,Basis) function with inputs in order is calculated as follows:

1/1/2008
20/2/2008
95.58
100
2

=YIELDDISC(A1,A2,A3,A4,A5) : Calculates the discount yield Value with the inputs in the range A1 to A5. Returns 33.3% as a result.
=YIELDDISC(DATE(2007,1,1), DATE(2008,2,20), 85.12, 100) : Calculates the discount yield Value with the inputs. Returns 15.39% as a result.

Related Videos

YIELDDISC

See Also

• YIELD
• YIELDMAT

References

• Yield
• Discount Yield
• Basis Convention

• List of Main Z Functions

• Z3 home