Earlier, we had seen how the RATE function can be used to calculate the return on investments, whether lump-sum or periodic. This can come in handy in the calculation of SIP returns, too.

The IRR function in Excel can be used in the case of bonds. However, the rate function can be used for computing the IRR on the coupon date of a bond.

Leaving data volume aside, the built-in IRR Excel function doesn’t perform periodic calculations. Instead, it expects data to be modeled in Excel on a monthly basis, creating internal time waste and ...