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Financial function

YIELDDISC

Returns the annual yield for a discounted security, like a zero-coupon bond.

Rarely usedDifficulty 1550 · AdvancedUsage rank #458 of 520
Practice · 2 questions →

When to use it

The annual yield of a discounted security, based on its price.

The shape of it

Syntax
=YIELDDISC(settlement, maturity, pr, redemption, [basis])

Worked examples

  • Short paper

    =YIELDDISC(DATE(2008,2,16),DATE(2008,3,1),99.795,100,2) 5.28%

    Two weeks of paper at 99.795.

  • Half year

    =YIELDDISC(DATE(2025,1,1),DATE(2025,7,1),97.5,100) 5.13%

    Half a year, 30/360.

  • One year

    =YIELDDISC(DATE(2025,1,1),DATE(2026,1,1),95,100) 5.26%

    A full year.

Worth knowing

  • Yield = (redemption - price)/price × year/days.
  • Higher than DISC on the same paper because the base is the price.
  • PRICEDISC gives the price from the discount rate.

Where it goes wrong

  • #NUM! for a non-positive price.
  • Text dates return #VALUE!.

Related

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