ODDFYIELD

See Also

Returns the yield of a security that has an odd (short or long) first period.

If this function is not available, and returns the #NAME? error, install and load the Analysis ToolPak add-in.

How?

Syntax

ODDFYIELD(settlement,maturity,issue,first_coupon,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 as text.

Settlement    is the security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

Maturity    is the security's maturity date. The maturity date is the date when the security expires.

Issue    is the security's issue date.

First_coupon    is the security's first coupon date.

Rate    is the security's interest rate.

Pr    is the security's price.

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.

• Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900. Microsoft Excel for the Macintosh uses a different date system as its default.
• The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 30-year bond is issued on January 1, 2008, and is purchased by a buyer six months later. The issue date would be January 1, 2008, the settlement date would be July 1, 2008, and the maturity date would be January 1, 2038, which is 30 years after the January 1, 2008, issue date.
• Settlement, maturity, issue, first_coupon, and basis are truncated to integers.
• If settlement, maturity, issue, or first_coupon is not a valid date, ODDFYIELD returns the #VALUE! error value.
• If rate < 0 or if pr ≤ 0, ODDFYIELD returns the #NUM! error value.
• If basis < 0 or if basis > 4, ODDFYIELD returns the #NUM! error value.
• The following date condition must be satisfied; otherwise, ODDFYIELD returns the #NUM! error value:

  maturity > first_coupon > settlement > issue

• Excel uses an iterative technique to calculate ODDFYIELD. This function uses the Newton method based on the formula used for the function ODDFPRICE. The yield is changed through 100 iterations until the estimated price with the given yield is close to the price. See ODDFPRICE for the formula that ODDFYIELD uses.

Example

The example may be easier to understand if you copy it to a blank worksheet.

How?

Note  To view the number as a percentage, select the cell and click Cells on the Format menu. Click the Number tab, and then click Percentage in the Category box.