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Formula generator for YIELDDISC function

The YIELDDISC function calculates the annual yield of a discount (non-interest-bearing) security, based on its settlement date, maturity date, price, redemption value, and optional day count convention. It is commonly used in financial analysis to determine the yield of such securities.

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How to generate an YIELDDISC formula using AI.

To obtain information on the ARRAY_CONSTRAIN formula, you could ask the AI chatbot the following question: “To get the YIELDDISC formula for a specific data set, you can ask the AI chatbot the following question: "What is the formula for calculating yield to maturity for a discounted security in Excel?" This question will prompt the AI chatbot to provide you with the YIELDDISC formula, which is used to calculate the yield to maturity for a discounted security in Excel.

YIELDDISC formula syntax

The YIELDDISC function in Excel calculates the annual yield of a discounted security, such as a Treasury bill or a commercial paper. The syntax for YIELDDISC is as follows: YIELDDISC(settlement, maturity, pr, redemption, basis) - settlement: The date on which the security was purchased. - maturity: The maturity date of the security. - pr: The price per $100 face value of the security. - redemption: The redemption value per $100 face value of the security at maturity. - basis: Optional argument that specifies the day count basis to use for calculations. If omitted, it defaults to 0 (US 30/360 basis). The YIELDDISC function returns the annual yield of the security as a decimal number.

Use Cases & Examples

In these use cases, we use the YIELDDISC function to calculate the yield of a discounted security. The YIELDDISC function takes into consideration the price, redemption value, settlement date, and maturity date to determine the yield.

Calculating the annual yield of a discount security

Description

In this use case, we use the YIELDDISC function to calculate the annual yield of a discount security based on its settlement date, maturity date, price, redemption value, and day count convention

Result

=YIELDDISC(settlement, maturity, price, redemption, [day_count_convention])

Analyzing the yield of multiple discount securities

Description

In this use case, we use the YIELDDISC function along with other functions to analyze the yield of multiple discount securities. We can use functions like AVERAGE, MAX, and MIN to calculate the average, maximum, and minimum yield among a group of discount securities.

Result

=AVERAGE(YIELDDISC(settlement1, maturity1, price1, redemption1, [day_count_convention]), YIELDDISC(settlement2, maturity2, price2, redemption2, [day_count_convention]), ...)

Comparing yields of different discount securities

Description

In this use case, we use the YIELDDISC function along with other functions to compare the yields of different discount securities. We can use functions like IF and CHOOSE to determine which security has the highest or lowest yield based on certain conditions.

Result

=IF(YIELDDISC(settlement1, maturity1, price1, redemption1, [day_count_convention]) > YIELDDISC(settlement2, maturity2, price2, redemption2, [day_count_convention]), "Security 1 has higher yield", "Security 2 has higher yield")

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