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388 Analysis ToolPak Financial Functions
Table 4-1 (continued) Function
XIRR(values,dates,[guess]) XNPV(rate,values,dates)
YIELD(settlement,maturity,rate,pr, redemption,frequency,[basis])
YIELDDISC(settlement,maturity,pr, redemption,[basis])
YIELDMAT(settlement,maturity,issue, rate,pr,[basis])
What It Calculates
Calculates the internal rate of return for a schedule of cash flows that are not periodic.
Calculates the net present value for a schedule of cash flows that are not periodic.
Calculates the yield on a security that pays periodic interest (used to calculate bond yield).
Calculates the annual yield for a dis- counted security.
Calculates the annual yield of a security that pays interest at maturity.
You may note in Table 4-1 that many of the Analysis ToolPak financial func- tions make use of an optional basis argument. This optional basis argument is a number between 0 and 4 that determines the day count basis to use in determining the fractional part of the year:
✦ 0 (or omitted) to base it on the U.S. (NASD) method of 30/360 (see the coverage on the DAYS360 function in Book III, Chapter 3 for details on the U.S. method)
✦ 1 to base the fraction on actual days/actual days
✦ 2 to base the fraction on actual days/360
✦ 3 to base the fraction on actual days/365
✦ 4tobasethefractionontheEuropeanmethodof30/360(seetheDAYS360 coverage in Book III, Chapter 3 for details on the European method)
For detailed information on the other required arguments in the Analysis ToolPak financial functions shown in this table, select the function from the Financial button’s drop-down list and then click the Help on This Function link in the lower-left corner of its Function Arguments dialog box.