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YIELDDISC Function in Excel

Use

The YIELDDISC Function one of the Financial function returns the annual yield for a discounted security, such as a treasury bill.

Syntax

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
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

Example

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.

Function Errors

Error Occurs
#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.




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