YIELDDISC(settlement, maturity, price, redemption [,basis])

Returns the interest rate (annual) for a discounted security (no interest payments).

settlementThe settlement date of the security.
maturityThe maturity date of the security.
priceThe price per $100 face value.
redemptionThe redemption value per $100 face value.
basis(Optional) The type of day counting to use.
0 = US 30/360 (default)
1 = Actual/Actual
2 = Actual/360
3 = Actual/365
4 = European 30/360

Remarks

* The "settlement" date is the date a buyer purchases a coupon, such as a bond.
* The "maturity" date is the date when a coupon expires.
* The "redemption" value is the value of the security when it matures.
* The "redemption" value is often referred to as the par value.
* Dates must be entered as text strings with quotation marks or as serial numbers.
* If "settlement" is not an integer, it is truncated.
* If "settlement" is not a valid date, then #NUM! is returned.
* If "maturity" is not an integer, it is truncated.
* If "maturity" is not a valid date, then #NUM! is returned.
* If "price" = 0, then #NUM! is returned.
* If "redemption" = 0, then #NUM! is returned.
* If "basis" is not an integer, it is truncated.
* If "basis" < 0, then #NUM! is returned.
* If "basis" > 4, then #NUM! is returned.
* If "settlement" = "maturity", then #NUM! is returned.
* An example of a discounted security is a US Treasury bill.
* There is also a YIELD for the interest rate (annual) for a series of equal cash flows at regular intervals.
* There is also a YIELDMAT for the interest rate (annual) of a security that pays its interest at maturity.
* In Excel 2003 this function was only available when you had the Analysis ToolPak add-in loaded.
* For the Microsoft documentation refer to support.office.com

 A
1=YIELDDISC("1/07/2009","1/07/2028",65,100,0) = 2.834%
2=YIELDDISC("1/07/2009","1/07/2028",65,100,1) = 2.834%
3=YIELDDISC("1/07/2009","1/07/2028",65,100,2) = 2.793%
4=YIELDDISC("1/07/2009","1/07/2028",65,100,3) = 2.832%
5=YIELDDISC("1/07/2009","1/07/2028",65,100,4) = 2.834%

1 - What is the yield of a 20-year treasury bill issued on January 1 2008, with a settlement date of July 1 2009 with a redemption value of $65 and a price ratio of 100. The maturity date would therefore be January 1 2028 (issue date + 20 years).

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