7/30/2019 Module 1 Excel Functions Syntax

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SYNTAX

Function Explanation of Key Words

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)

FV Future Value

PV Present Value

PMT Payment

IPMTInterest Payment

NPERNumber of Periods

RATERate of Interest

NPVNet Present Value

IRRInternal 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 containsprincipal 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 isomitted, 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 If payments are due

0 At the end of the period

1 At the beginning of the period

Remarks

Make sure that you are consistent about the units you use for specifying rate and nper. If you makemonthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. Ifyou make annual payments on the same loan, use 12% for rate and 4 for nper.

7/30/2019 Module 1 Excel Functions Syntax

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For all the arguments, cash you pay out, such as deposits to savings, is represented by negativenumbers; 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 isbetween 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 yourpayment 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 astext.

Settlement is the security's settlement date. The security settlement date is the date after the issue date whenthe 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.