The YIELDDISC function in Excel calculates the annual yield for a given series of cash flows, and then discounts those cash flows back to the present. This function is useful for investment analysis, as it can help you to determine the profitability of a given investment. To use the YIELDDISC function, you will need to input the following information: the initial investment, the annual cash flow, the number of periods, and the discount rate. The function will then return the annual yield for that investment.
The syntax of the YIELDDISC function in Excel is as follows:
rate - The annual interest rate. days - The number of days in the period.settlement - The settlement date.payment - The payment amount.perpetuity - The number of payments per year.
The YIELDDISC function in Excel is used to calculate the yield of a bond given the bond's par value, coupon rate, and years to maturity. The function takes into account the present value of the bond's cash flows and the bond's price. The formula for the YIELDDISC function is YIELDDISC(rate,nper,pmt,pv,fv,type) where rate is the coupon rate, nper is the number of periods, pmt is the payment per period, pv is the present value, fv is the future value, and type is 0 for a regular bond and 1 for a zero-coupon bond.
There are a few instances in which you should not use the YIELDDISC function in Excel. First, if you do not have any investments that pay dividends, you will not be able to use this function. Additionally, you should not use the YIELDDISC function if you do not have any historical dividend data. Finally, you should not use the YIELDDISC function if you are trying to calculate the yield on a bond.
There are a few similar formulae to YIELDDISC in Excel. One is YIELD. This formula calculates the annual yield on a security that pays periodic interest. Another is NOMINAL. This formula calculates the annual nominal yield on a security that pays periodic interest. Another is CUMIPMT. This formula calculates the cumulative interest paid between two dates. Another is CUMPRINC. This formula calculates the cumulative principal paid between two dates.