The purpose of the function is to calculate the yield without going through the trouble of creating an amortization schedule. That way the yields can be calculated on a whole portfolio of mortgages. Market price is obtained from market sources. Then, on the Proof sheet, I built an amortization schedule to show that the yield on the amortization schedule matched the yield on the VBA formula.The market price in the function is a given. The amortization method needs to calculates the price first, using PV formulas, given the yield from the function.If the IRR calculated yield, matches the yield on the formula, the formula function yield is correct. It proves that the cash flows of both the function and the amortization are the same, otherwise there would be a problem with the function. You could argue that the fact that the amortization price along is proof, but calculation the yield as a last step just adds to the proof.

Don

]]>Please explain “U.S vs normal”

Don

]]>You only need the password if you what to see the VBA

Don

]]>I downloaded the vba_many_loans file in excel but wasn’t prompted for a password like the others comments reference. Am I not looking at the same file?

Thanks for your help.

]]>Don ]]>