Misconception · MIS:spreadsheet-can-invent-market-yield

Mistaken idea “A spreadsheet can invent the market yield”

Mistaken reasoning: This mistake treats a solved internal rate as sufficient evidence for the accounting yield without validating scope and supplied transaction facts.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

A calculation can solve an implied rate from supplied cash flows. It cannot establish that those are the complete scoped cash flows or that the rate is the required accounting input.

Where to watch

When this mistake may appear

  • Issue proceeds and payment amounts are available.
Check your work

Your work may contain this mistake if:

  • Whatever rate makes the schedule tie is the authoritative market yield.