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:

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A is the number of days from the beginning of the period to Settlement

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DSR is the number of days from Settlement to Redemption

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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:

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Either Settlement or Maturity is not a valid date.

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Price £ 0 or Redemption £ 0.

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Frequency is a number other than 1, 2, or 4.

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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.