YIELD(settlement, maturity, rate, price, redemption, frequency [,basis])

Returns the interest rate (annual) for a series of equal cash flows at regular intervals.


settlementThe settlement date of the security.
maturityThe maturity date of the security.
rateThe annual coupon rate of the security.
priceThe price per $100 face value.
redemptionThe security's redemption value per $100 face value.
frequencyThe number of coupon payments per year:
1 = annual
2 = semi-annual
4 = quarterly
basis(Optional) The type of day counting to use.
0 = US 30/360 (default)
1 = Actual/Actual
2 = Actual/360
3 = Actual/365
4 = European 30/360

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.
* The IRR function can be used to calculate the bond yield to maturity on interest payment dates.
* The RATE function can be used for annuity calculations and can also be used to calculate the bond yield to maturity on interest payment dates.
* The YIELDDISC function can be used for the yield of a discounted security (no interest payments).
* The YIELDMAT function can be used for the yield of a security that pays interest at maturity.
* In Excel 2007 the accuracy of this function was improved.
* In Excel 2003 this function was only available when you had the Analysis ToolPak add-in loaded.
* For the Microsoft documentation refer to support.office.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(24/9/2008,24/9/2010,5%,980,1000,1,0) = #NUM!
5=YIELD("2/15/1999","11/15/2007",0.0575,95.04287,100,2,0) = #VALUE!
6=YIELD("01/01/2008","01/01/2012",6%,960,1000,1,0) = 1.64%
7??
8??
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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).
6 - 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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