Documentation/How Tos/Calc: YIELD function
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YIELD
Calculates the yield for an interest paying security.
Syntax:
YIELD(settlementdate; maturitydate; rate; price; redemptionvalue; frequency; basis)
- settlementdate: the settlement (purchase) date of the security.
- maturitydate: the maturity (redemption) date of the security.
- rate: the (annual) coupon rate of the security.
- price: the price of the security, per 100 par value.
- redemptionvalue: the redemption value of the security, per 100 par value.
- frequency: number of interest payments per year (1, 2 or 4).
- basis: is the calendar system to use. Defaults to 0 if omitted.
- 0 - US method (NASD), 12 months of 30 days each
- 1 - Actual number of days in months, actual number of days in year
- 2 - Actual number of days in month, year has 360 days
- 3 - Actual number of days in month, year has 365 days
- 4 - European method, 12 months of 30 days each
- This function calculates the yield of a security. It uses the PRICE function, and iterates (up to 100 times) to find the yield that would give price.
Example:
YIELD("2008-02-15"; "2010-11-15"; 5%; 95; 100; 2; 0)
- returns approximately 0.070 or 7%.
Issues:
- This function is not exact, as it relies on iteration. It may thus give slightly different results to other spreadsheets. For practical purposes any differences are unlikely to be significant.
See Also