Discount Rate

excel yield function v 1.0

Excel YIELD Function

The Excel YIELD to maturity function is used to calculate the yield to maturity for a bond, and has the syntax YIELD (Settlement, Maturity, Rate, Pr, Redemption, Frequency, Basis).

Last modified February 13th, 2023 by Michael Brown
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excel effect function

Excel EFFECT Function

The Excel EFFECT function is used to calculate the effective annual rate from the nominal annual rate based on the number of compounding periods in a year. The effective annual rate allows for compounding, whereas the nominal annual rate does not allow for compounding.

Last modified February 10th, 2023 by Michael Brown
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flat interest rate formula

Flat Interest Rate

The term flat interest rate is sometimes used in relation to loan agreements (particularly car loans) to show the rate of interest based on the original principal loan amount (PV).

Last modified January 30th, 2023 by Michael Brown
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effective annual rate formula

Effective Annual Rate Formula

The effective interest rate formula calculates the rate of interest for a year based on a nominal rate (i) compounded a number of times a year (m). The formula for annual interest rate is sometimes referred to as the annual equivalent rate formula or AER formula.

Last modified February 7th, 2023 by Michael Brown
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irr internal rate of return cash flow diagram

IRR Internal Rate of Return

The net present value of a series of cash flows is the sum of the present values of each of the cash flows. The internal rate of return (IRR) is the discount rate which will produce a net present value (NPV) of zero.

Last modified November 26th, 2019 by Michael Brown
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lump sum discount rate formula

Lump Sum Discount Rate Formula

The lump sum discount rate formula is used to calculate the discount rate (i) needed to compound a lump sum from its present value (PV) to a future value (FV) over a given number of periods (n).

Last modified February 14th, 2023 by Michael Brown
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