Manuals/calci/YIELD

YIELD(SettlementDate, MaturityDate, Rate, Price, Redemption, Frequency, Basis)

where,

SettlementDate - represents the settlement date.

MaturityDate - represents the maturity date.

Rate - represents the rate.

Price - represents the price per $100 face value.

Redemption - is the redemption value per $100 face value.

Frequency - the number of coupon payment per year.

Payments frequency

annual 1

semiannual 2

quarterly 4

Basis - type of day count basis

Basis Day count basis

0 or omitted US 30/360

1 Actual/actual

2 Actual/360

3 Actual/365

4 European 30/360

It returns the yield that pays periodic interest.

Formula:-

If 1 coupon period or less than Redemption

YIELD={[(Redemption/100)+(Rate/Frequency)]-

[(Par/100)+((B/C) x (Rate/Frequency))]} / [(Par/100)+((A/C) x (Rate/Frequency))] x( Frequeny x C)/N

where,

B - number of daysfrom the beginning of the period to the settlement date.

C - number of days in the coupon period.

N - number of days from settlement to redemption value.

If Basis < 0 or Basis > 4 , YIELD returns the #ERROR.

If Rate < 0 or Price <= 0 or Redemption <=0, it returns the #ERROR.

If SettlementDate >= MaturityDate, YIELD returns #ERROR.

If Frequency other than 1, 2 or 4 returns the #ERROR.

YIELD

Lets see an example in (Column2, Row1)

=YIELD(R1C1, R2C1, R3C1, R4C1, R5C1,R6C1,R7C1)

YIELD returns 47.950201.

Consider another example

=YIELD(date(2007,1,1), date(2008,2,20), "15%", 89.25,100,1,5)

It returns #ERROR(Basis=5).

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