{"id":1152,"date":"2019-05-23T17:16:31","date_gmt":"2019-05-23T14:16:31","guid":{"rendered":"https:\/\/www.test4u.eu\/excelpedia\/?p=1152"},"modified":"2019-05-23T17:16:37","modified_gmt":"2019-05-23T14:16:37","slug":"how-to-use-the-financial-functions-yield-yielddisc-yieldmat","status":"publish","type":"post","link":"https:\/\/www.test4u.eu\/excelpedia\/how-to-use-the-financial-functions-yield-yielddisc-yieldmat\/","title":{"rendered":"How to use the Financial Functions YIELD, YIELDDISC, YIELDMAT"},"content":{"rendered":"\n<p>Excel provides us with numerous functions to calculate and\nmanage securities.<\/p>\n\n\n\n<p>Let\u2019s start with the functions that calculate the Yield of a security. These are <strong><a rel=\"noreferrer noopener\" aria-label=\"YIELD (opens in a new tab)\" href=\"https:\/\/www.test4u.eu\/excelpedia\/the-yield-function\/\" target=\"_blank\">YIELD<\/a><\/strong>, <strong><a rel=\"noreferrer noopener\" aria-label=\"YIELDMAT  (opens in a new tab)\" href=\"https:\/\/www.test4u.eu\/excelpedia\/the-yieldmat-function\/\" target=\"_blank\">YIELDMAT <\/a><\/strong>and <strong><a href=\"https:\/\/www.test4u.eu\/excelpedia\/the-yielddisc-function\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"YIELDDISC (opens in a new tab)\">YIELDDISC<\/a><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe class=\"youtube-player\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/VtBgrF_MqJk?version=3&#038;rel=0&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en-US&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox\"><\/iframe><\/span>\n<\/div><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-large-font-size\"><strong>Practice File:<\/strong><\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"https:\/\/www.test4u.eu\/excelpedia\/wp-content\/uploads\/2019\/05\/YIELD.YIELDDISC.YIELDMAT.xlsx\">YIELD.YIELDDISC.YIELDMAT<\/a><a href=\"https:\/\/www.test4u.eu\/excelpedia\/wp-content\/uploads\/2019\/05\/YIELD.YIELDDISC.YIELDMAT.xlsx\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Transcript<\/strong><\/p>\n\n\n\n<p>We can see here the details of a security. <\/p>\n\n\n\n<p>We have calculated three types of yield in our example.<\/p>\n\n\n\n<p>It\u2019s the yield for a security that pays periodic interest.<\/p>\n\n\n\n<p>The yield for a security that pays interest only at\nmaturity.<\/p>\n\n\n\n<p>And the yield for a discounted security.<\/p>\n\n\n\n<p>This way we can decide which kind of security is more\nprofitable to us as investors.<\/p>\n\n\n\n<p>In the current scenario the yield seems better if we decide\nto be paid at maturity.<\/p>\n\n\n\n<p>Let\u2019s see another example. Here the yield is yet to be\ncalculated. <\/p>\n\n\n\n<p>The issue date is the date the security was issued.<\/p>\n\n\n\n<p>The settlement date is the date after the issue date when\nthe security is traded to the buyer.<\/p>\n\n\n\n<p>The maturity date is the date when the security expires.<\/p>\n\n\n\n<p>In cell B10 we type equals with the name of the function.\nThen the settlement date, the maturity date, the annual coupon rate, the price\nper 100$ of face value and the redemption value per 100$ of face value. The\nlast argument, basis, is optional and it helps us choose the type of day count\nto use. Since we will always use the default 0 value, we can omit it.<\/p>\n\n\n\n<p>In B11 we calculate the Yield for a security that pays at\nmaturity, thus we use the YIELDMAT function.<\/p>\n\n\n\n<p>Same as before we select the settlement and maturity date,\nfollowed by the issue date, the rate and the price per $100 of face value. We\nomit the basis again and we have our result<\/p>\n\n\n\n<p>Lastly we will calculate the Yield for a discounted security\nin cell B12.<\/p>\n\n\n\n<p>We type the name of the function and select, as before, the\nsettlement and maturity dates, the price per $100 of face value and finally the\nredemption value per $100 of face value.<\/p>\n\n\n\n<p>We press Enter and have the result.<\/p>\n\n\n\n<p>In this scenario, as the previous one the yield is better if\nthe security pays at maturity.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Excel provides us with numerous functions to calculate and manage securities.<br \/>\nLet\u2019s start with the functions that calculate the Yield of a security. These are YIELD, YIELDMAT and YIELDDISC<\/p>\n","protected":false},"author":2,"featured_media":1154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[115,122,123,124],"class_list":["post-1152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tutorials","tag-financial","tag-yield","tag-yielddisc","tag-yieldmat"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.test4u.eu\/excelpedia\/wp-content\/uploads\/2019\/05\/tutorial_yield.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paRnIz-iA","_links":{"self":[{"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/posts\/1152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/comments?post=1152"}],"version-history":[{"count":0,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/posts\/1152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/media\/1154"}],"wp:attachment":[{"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/media?parent=1152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/categories?post=1152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.test4u.eu\/excelpedia\/wp-json\/wp\/v2\/tags?post=1152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}