## 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).

Excel YIELD Function November 6th, 2016

## 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.

Excel EFFECT Function November 6th, 2016

## Continuous to Periodic Interest Rate Formula

The continuous to periodic interest rate formula is used to convert a continuous interest rate (r) to a periodic interest rate (i) with compounding taking place (m) times in a period.

Continuous to Periodic Interest Rate Formula November 6th, 2016

## 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).

Flat Interest Rate November 6th, 2016

## 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.

Effective Annual Rate Formula November 6th, 2016

## 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.

IRR Internal Rate of Return November 6th, 2016

## 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).

Lump Sum Discount Rate Formula December 7th, 2017