MicroStrategy ONE

Yield

Returns the yield on a security that pays periodic interest.

Syntax

Yield <Basis> (Settlement, Maturity, CouponRate, Price, Redemption, Frequency)

Where:

  • Settlement is the settlement date. This is the date on which the security is purchased.
  • Maturity is the maturity date. This is the date on which the security expires.
  • CouponRate is the annual interest rate.
  • Price is the price per $100 of face value.
  • Redemption is the redemption value per $100 of face value.
  • Frequency is the number of payments per year. The valid values are 1, 2, and 4 where annual payments =1, semiannual payments =2, and quarterly payments =4.
  • Basis is a parameter that indicates the time-count basis to be used. The default value for Basis is 0, which is typically used by American agencies and assumes 30-day months and 360-day years (30/360). Other possible values for this parameter are as follows.
Basis value Application

0 (30/360)

Assumes 30 days in each month, 360 days in each year.

1 (actual/actual)

Assumes actual number of days in each month, actual number of days in each year.

2 (actual/360)

Assumes actual number of days in each month, 360 days in each year.

3 (actual/365)

Assumes actual number of days in each month, 365 days in each year.

4 (30/60)

Used by European agencies, assumes the same values as “0” for American institutions.

Expression

  • If there is one period (or less) until Redemption, this function is calculated as follows.

Where:

  • A is the number of days from the beginning of the period to Settlement
  • DSR is the number of days from Settlement to Redemption
  • E is the number of days in a period
  • If there is more than one period until Redemption, this function is calculated through iteration, and is based on the calculation for the PRICE function. See also Price (price per $100 face value).

Usage notes

  • If Settlement, Maturity, or Frequency is not an integer, it is truncated.
  • The engine returns an empty cell if:
    • Either Settlement or Maturity is not a valid date.
    • Price £ 0 or Redemption £ 0.
    • Frequency is a number other than 1, 2, or 4.
    • Settlement > Maturity.
  • The Settlement date and the Maturity date should be included within single quotations in the expression for the expression to be considered as a valid expression.