Note: In order to use the spreadsheet examples, you need to download Business Functions
|NomToTrue (NomYield, PmtsPerYear)|
|Convert a Nominal (Simple) Yield to a True (APR) Yield|
This function converts a Nominal Yield to a True Yield, for a given payment frequency PmtsPerYearOpt. For example, 5% per annum Nominal, with payments quarterly in advance, converts to a True Yield of 5.0945% as a True Yield. This is just the same as converting a Simple Interest Rate, eg 5% per annum quarterly to an annual AER interest rate.
TemplatesThis function features in the following downloadable spreadsheet template(s):