Scribd
Upload
46 views

Module 1 Excel Functions Syntax

This document defines and explains financial functions in Microsoft Excel for calculating present value, future value, payment amounts, interest payments, number of periods, rates of return, net present value, internal rate of return, yield on bonds, and yield to maturity. These functions allow users to analyze cash flows, interest rates, returns and the time value of money for financial modeling and planning. Key inputs for the functions include rate of interest, number of periods, payment amounts, present and future values, and dates for bonds. The functions are designed to provide flexible analysis of investments, loans, and cash flows over time.

Uploaded by

balki123
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
46 views

Module 1 Excel Functions Syntax

This document defines and explains financial functions in Microsoft Excel for calculating present value, future value, payment amounts, interest payments, number of periods, rates of return, net present value, internal rate of return, yield on bonds, and yield to maturity. These functions allow users to analyze cash flows, interest rates, returns and the time value of money for financial modeling and planning. Key inputs for the functions include rate of interest, number of periods, payment amounts, present and future values, and dates for bonds. The functions are designed to provide flexible analysis of investments, loans, and cash flows over time.

Uploaded by

balki123
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

SYNTAX

Function FV(rate,nper,pmt,pv,type) PV(rate,nper,pmt,fv,type) PMT(rate,nper,pv,fv,type) IPMT(rate,per,nper,pv,fv,type) NPER(rate, pmt, pv, fv, type) RATE(nper,pmt,pv,fv,type,guess) NPV(rate,value1,value2, ...) IRR(values,guess) YIELD(settlement,maturity,rate, pr,redemption,frequency,basis) YIELDMAT(settlement,maturity, issue,rate,pr,basis) Explanation of Key Words FV Future Value

PV Present Value PMT Payment IPMT Interest Payment NPER Number of Periods RATE Rate of Interest NPV Net Present Value IRR Internal Rate of Return YIELD Yield on a Bond YIELDMAT Yield to Maturity.

RATE is the interest rate per period. NPER is the total number of payment periods in an annuity. PMT is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument. PV is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument. TYPE is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0. Set type equal to 0 1 Remarks Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper. If payments are due At the end of the period At the beginning of the period

For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers. PER is the period for which you want to find the interest and must be in the range 1 to nper. GUESS is your guess for what the rate will be. If you omit guess, it is assumed to be 10 percent.

If RATE does not converge, try different values for guess. RATE usually converges if guess is between 0 and 1. Value1, value2, ... are 1 to 29 arguments representing the payments and income. Value1, value2, ... must be equally spaced in time and occur at the end of each period.

NPV uses the order of value1, value2, ... to interpret the order of cash flows. Be sure to enter your payment and income values in the correct sequence. YIELD (settlement,maturity,rate,pr,redemption,frequency,basis) Important Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text. Settlement is 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 is the security's maturity date. The maturity date is the date when the security expires. Rate is the security's annual coupon rate. Pr is the security's price per $100 face value. Redemption is the security's redemption value per $100 face value. Frequency is the number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4. Basis is the type of day count basis to use.

You might also like