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 [[Quant > 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

	A
1	=YIELD("24/9/2008", "24/9/2010", 5%, 980, 1000, 1, 0) = 1.52%
2	=YIELD("24/9/2008", "24/9/2011", 5%, 980, 1000, 1, 0) = 1.18%
3	=YIELD("24/9/2008", "24/9/2010", 8%, 980, 1000, 1, 0) = 1.83%
4	=YIELD("01/01/2008", "01/01/2012", 6%, 960, 1000, 1, 0) = 1.64%
5	=YIELD(24/9/2008, 24/9/2010, 5%, 980, 1000, 1, 0) = #NUM!
6	=YIELD("2/15/1999", "11/15/2007", 0.0575, 95.04287, 100, 2, 0) = #VALUE!

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).