YIELD |
YIELD(settlement, maturity, rate, price, redemption, frequency [,basis]) |
Returns the interest rate (annual) for a series of equal cash flows at regular intervals. |
settlement | The settlement date of the security. |
maturity | The maturity date of the security. |
rate | The annual coupon rate of the security. |
price | The price per $100 face value. |
redemption | The security's redemption value per $100 face value. |
frequency | The number of coupon payments per year: 1 = annual 2 = semi-annual 4 = quarterly |
basis | (Optional) The type of day counting to use. 0 = 30/360 (default) 1 = Actual/Actual 2 = Actual/360 3 = Actual/365 4 = 30E/360 |
REMARKS |
* This function assumes all coupons are paid at the end of each period. * This function assumes the bond matures on the last coupon payment date. * This function can be used to calculate the bond yield to maturity on any date. * This function takes annual arguments and always returns an annual interest rate. * This function returns the [[Finance > Interest Rates > Effective Annual Interest Rate]]. * This function has an implicit assumption that all coupons are reinvested immediately at the same rate. * Dates must be entered as text string with quotation marks or as serial numbers. * If "settlement" is not an integer, it is truncated. * If "settlement" is not a valid date, then #NUM! is returned. * If "settlement" = "maturity", then #NUM! is returned. * If "maturity" is not a valid date, then #NUM! is returned. * If "maturity" is not an integer, it is truncated. * If "rate" < 0, then #NUM! is returned. * If "pr" = 0, then #NUM! is returned. * If "redemption" = 0, then #NUM! is returned. * If "frequency" is not an integer, it is truncated. * If "frequency" is any number other than 1, 2, or 4, then #NUM! is returned. * If "basis" is left blank, then 0 is used. * If "basis" is not an integer, it is truncated. * If "basis" < 0, then #NUM! is returned. * If "basis" > 4, then #NUM! is returned. * Dates should really be entered using the DATE function as problems can occur if you enter dates as text. * You can use the IRR function to return the interest rate for a series of unequal cash flows at regular intervals (implicit reinvestment rate). * You can use the RATE function to return the interest rate for a series of equal cash flows at regular intervals. * You can use the YIELDDISC function to return the interest rate (annual) for a discounted security (no interest payments). * You can use the YIELDMAT function to return the interest rate (annual) for a security that pays interest at maturity. * For the Microsoft documentation refer to support.microsoft.com * For the Google documentation refer to support.google.com |
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1 - What is the yield to maturity of a 2 year bond with a redemption of $1,000, coupon of 5% (ie $50) paid annually at a price of 98 (ie 98% of the redemption, 980). 2 - What is the yield to maturity of a 3 year bond with a redemption of $1,000, coupon of 5% (ie $50) paid annually at a price of 98 (ie 98% of the redemption, 980). 3 - What is the yield to maturity of a 2 year bond with a redemption of $1,000, coupon of 8% (ie $80) paid annually at a price of 98 (ie 98% of the redemption, 980). 4 - What is the yield to maturity of a 4 year bond with a redemption of $1,000, coupon of 6% (ie $60) paid annually at a price of 96 (ie 96% of the redemption, 960). |
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