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Line 17:
Line 17: − + − + − C= Number of days in coupon period,+ − N= Number of days from settlement date to redemption date,+
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*Yield is the annual percentage return on an investment or security. Yield is the value obtained by dividing Annual Interest by Bond Price.
*Yield is the annual percentage return on an investment or security. Yield is the value obtained by dividing Annual Interest by Bond Price.
Formula:-
'''Formula''':-
If B= Number of days from beginning of coupon period to settlement date,
If B= Number of days from beginning of coupon period to settlement date,
C= Number of days in coupon period,
N= Number of days from settlement date to redemption date,
<math>YIELD = \frac{(\frac{redemption}{100}+\frac{rate}{frequency})-(\frac{par}{100}+(\frac{B}{C}*\frac{rate}{frequency}))}{\frac{par}{100}+(\frac{B}{C}*\frac{rate}{frequency})}*\frac{frequency*C}{N}</math>
<math>YIELD = \frac{(\frac{redemption}{100}+\frac{rate}{frequency})-(\frac{par}{100}+(\frac{B}{C}*\frac{rate}{frequency}))}{\frac{par}{100}+(\frac{B}{C}*\frac{rate}{frequency})}*\frac{frequency*C}{N}</math>