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 = semiannual 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. * For the Microsoft documentation refer to support.microsoft.com 

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). 
© 2021 Better Solutions Limited. All Rights Reserved. © 2021 Better Solutions Limited Top