The Excel YIELDDISC function returns the annual yield for a discounted security, such as a Treasury bill, that is issued at a discount but that matures at face value.
Syntax:= YIELDDISC (sd, md, pr, redemption, [basis])
The YIELDDISC function syntax has the following arguments:
- Settlement Required. The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- Maturity Required. The security’s maturity date. The maturity date is the date when the security expires.
- Pr Required. The security’s price per $100 face value.
- Redemption Required. The security’s redemption value per $100 face value.
- Basis Optional. The type of day count basis to use.
|Basis||Day count basis|
|0 or omitted||US (NASD) 30/360|
Example: Let’s look at some Excel YIELDDISC function examples and explore how to use the YIELDDISC function as a worksheet function in Microsoft Excel:
In the following spreadsheet, the Excel Yielddisc function is used to calculate the annual yield for a discounted security that has the settlement date 01-Mar-2020 and the maturity date 01-Jun-2020. The price per $100 face value is $98.585 and the redemption value is $100.
- Settlement, maturity, and basis are truncated to integers.
- If settlement or maturity is not a valid date, YIELDDISC returns the #VALUE! error value.
- If pr ≤ 0 or if redemption ≤ 0, YIELDDISC returns the #NUM! error value.
- If basis < 0 or if basis > 4, YIELDDISC returns the #NUM! error value.
If settlement ≥ maturity, YIELDDISC returns the #NUM! error value.