Home |
Search |
Today's Posts |
#1
Posted to microsoft.public.excel.programming
|
|||
|
|||
Large discrepancies between Yield() and its equation in online help
I'm trying to create custom functions to do what Yield() and Price()
do except to also allow 12 as the fequency argument (Excel's built-in Yield() and Price() accept only 1, 2, or 4 as the frequency argument; for all other values they return an error). The online help for Excel's Yield() and Price() functions show the equations used to generate them. I set up a worksheet to do randomized testing to find any differences between the custom functions and Excel's functions. I'm finding that although the equations usually return close to the same result, there are sometimes large discrepancies. For example: Settlement: Aug 28, 6312 Maturity: Aug 30, 6360 Rate: 1.770369509 Pr: 4.972347127 Redemption: 1.900433108 Frequency: 4 Basis: 1 Excel's Yield returns: 28.31249092 Equation returns: 35.60430243 At first I assumed it was a problem with programming the equation, but then I found this function here in this newsgroup: http://groups.google.com/group/micro...0e0c2ffae4c225 That function, written by Myrna Larson, returns 35.60419324 for the above example arguments, very close to what I had found. I can provide more examples if desired. I've also found discrepancies with Price, but I'll focus on Yield for now since two seperate efforts by two people are giving similar results, both of them sometimes very different than Excel's results. So -- what is Excel's Yield() doing differently than what its online help says it is doing??? Thanks, Greg |
#2
Posted to microsoft.public.excel.programming
|
|||
|
|||
Large discrepancies between Yield() and its equation in onlinehelp
Hi. I don't have an answer, but "in general" you usually buy (price)
that is "Lower" then the Redemption price. I may be wrong though. Your Price is "Higher" than Redemption. You may want to double-check your numbers. The fact that the year is in 6312 makes me question the data also. - - - HTH :) Dana DeLouis Greg Lovern wrote: I'm trying to create custom functions to do what Yield() and Price() do except to also allow 12 as the fequency argument (Excel's built-in Yield() and Price() accept only 1, 2, or 4 as the frequency argument; for all other values they return an error). The online help for Excel's Yield() and Price() functions show the equations used to generate them. I set up a worksheet to do randomized testing to find any differences between the custom functions and Excel's functions. I'm finding that although the equations usually return close to the same result, there are sometimes large discrepancies. For example: Settlement: Aug 28, 6312 Maturity: Aug 30, 6360 Rate: 1.770369509 Pr: 4.972347127 Redemption: 1.900433108 Frequency: 4 Basis: 1 Excel's Yield returns: 28.31249092 Equation returns: 35.60430243 At first I assumed it was a problem with programming the equation, but then I found this function here in this newsgroup: http://groups.google.com/group/micro...0e0c2ffae4c225 That function, written by Myrna Larson, returns 35.60419324 for the above example arguments, very close to what I had found. I can provide more examples if desired. I've also found discrepancies with Price, but I'll focus on Yield for now since two seperate efforts by two people are giving similar results, both of them sometimes very different than Excel's results. So -- what is Excel's Yield() doing differently than what its online help says it is doing??? Thanks, Greg |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Current Yield vs. Yield to Maturity at low prices | Excel Worksheet Functions | |||
GET PAID $2000 PER WEEK FROM ONLINE MONEY MAKING PROGRAMME.THEREALPROGRAMME IN ONLINE | Excel Worksheet Functions | |||
Highlight Discrepancies | Excel Worksheet Functions | |||
Large size posts in Newsgroups yield lesser responses ? | Excel Programming |