The YIELDDISC Function one of the Financial function returns the annual yield for a discounted security, such as a treasury bill.
YIELDDISC(settlement, maturity, pr, redemption, [basis])
The YIELDDISC function has the followings arguments:
settlement – Required. After the issue date, it is the date when the security is traded to the buyer.
maturity – Required. The maturity date of the security.
pr – Required. The security’s price per $100 face value.
redemption – Required. It is the redemption value per $100 face value.
[basis] – Optional. The financial day count basis used by the security.
|Basis||Day count basis|
|0 or omitted||US (NASD) 30/360|
Suppose, you purchase a treasury bill priced at $98 on issuance to pay $100 in six months.
Based on the YIELDDISC function’s calculation, the treasury bill with the above terms has the 4.08% yield.
|#VALUE!||If supplied dates are not valid.|
|#NUM!||If pr ≤ 0 or if redemption ≤ 0.|
|If basis < 0 or if basis > 4.|
|If settlement date≥ maturity date.|