YIELDDISC
Yield per year of a security sold at a discount.
Group: Financial. Compatible with DAX.
Syntax
YIELDDISC ( <settlement>, <maturity>, <pr>, <redemption> [, <basis>] )| Parameter | Type | Description |
|---|---|---|
settlement | Date | The day the buyer takes the security over; later than its issue. |
maturity | Date | The day the security ends and its face value is repaid. |
pr | Number | What the buyer pays, in percent of the face value: 98.5 for 98.5 %. |
redemption | Number | What is repaid at maturity, in percent of the face value: usually 100. |
basis | Whole number optional | The day count, by number: US 30/360 (0, when left out), actual/actual (1), actual/360 (2), actual/365 (3) or European 30/360 (4). |
Returns
Number. The yield a year, as a decimal.
Remarks
- (redemption / pr − 1) divided by the year fraction from settlement to maturity: the gain on the price paid, at simple interest.
- It is higher than the
DISCof the same security, which is quoted on the redemption instead of the price. - A price or redemption of 0 or less, or settlement on or after maturity, is an error.
- The dates are taken as whole days. basis is rounded to a whole number first; outside 0 to 4 it is an error.
Examples
Commercial paper bought at 98.2
EVALUATE
ROW (
"Yield", YIELDDISC ( DATE ( 2026, 11, 2 ), DATE ( 2027, 5, 3 ), 98.2, 100, 2 )
)| Yield |
|---|
| 0.0362570220004028 |
Related functions
DISC, PRICEDISC, YIELD, TBILLYIELD.