The YIELDDISC function calculates the annual yield for a discounted security; for example, a Treasury bill.

YIELDDISC takes 4 required arguments and 1 optional argument:

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

The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 10-year bond is issued on January 1, 2014, and is purchased by a buyer seven months later. The issue date would be January 1, 2014, the settlement date would be August 1, 2014, and the maturity date would be January 1, 2024, 10 years after the January 1, 2014, issue date.

##### Using the YIELDDISC function:
The arguments for the YIELDDISC function are:
Argument Required? Description
settlement Required The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
maturity Required The security's maturity date. The maturity date is the date when the security expires.
pr Required The security's price per \$100 face value.
redemption Required The security's redemption value per \$100 face value
basis Optional The type of day count basis to use.
##### A few more things:
 • Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2014 is serial number 41640 because it is 41,640 days after January 1, 1900. • settlement, maturity and basis are truncated to integers. • If settlement or maturity is not a valid date, YIELDDISC returns the #VALUE! error value. • If pr ≤ 0 or if redemption ≤ 0, YIELDDISC returns the #NUM! error value. • If basis < 0 or if basis > 4, YIELDDISC returns the #NUM! error value. • If settlement ≥ maturity, YIELDDISC returns the #NUM! error value..

### Summary

The YIELDDISC function calculates the annual yield for a discounted security.