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YIELDDISC

The YIELDDISC function in Google Sheets calculates the annual yield of a discount (non-interest-bearing) security, based on price.

Function Syntax and Parameters

Syntax: YIELDDISC(settlement, maturity, price, redemption, [day_count_convention])

Parameters:

  • settlement: The date the security is purchased.
  • maturity: The date the security matures.
  • price: The price at which the security is purchased.
  • redemption: The redemption value of the security at maturity.
  • day_count_convention [Optional]: [Default value is 0] The number of days in a year to use for calculating the yield.

Step-by-Step Tutorial

  1. Using YIELDDISC to calculate yield:
    • Example: =YIELDDISC("1/1/2022", "1/1/2023", 92, 100, 1)
    • Result: 0.08695652174

Use Cases and Scenarios

  1. Bond Investments: Determine the annual yield on a discount bond.
  2. Financial Analysis: Calculate the yield of a non-interest-bearing security.

Related Function

  • YIELDMAT: Calculates the annual yield of a security that pays interest at maturity.

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