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Financial - ODDLYIELD Function
Description
The ODDLYIELD function returns the yield of a security that has an odd (short or long) last period.
Syntax
ODDLYIELD (settlement, maturity, last_interest, rate, pr, redemption, frequency, [basis])
Arguments
Argument | Description | Required/ Optional |
---|---|---|
Settlement | The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer. |
Required |
Maturity | The security's maturity date. The maturity date is the date when the security expires. |
Required |
Last_interest | The security's last coupon date. | Required |
Rate | The security's interest rate. | Required |
Pr | The security's price. | Required |
Redemption | The security's redemption value per $100 face value. | Required |
Frequency | The number of coupon payments per year.
|
Required |
Basis | The type of day count basis to use. Look at the Day Count Basis Table given below. |
Optional |
Day Count Basis Table
Basis | Day Count Basis |
---|---|
0 or omitted | US (NASD) 30/360 |
1 | Actual/actual |
2 | Actual/360 |
3 | Actual/365 |
4 | European 30/360 |
Notes
ODDLYIELD is calculated as follows −
$ODDLYIELD = \left [ \frac{\left ( redemption+\left ( \left ( \sum_{i=1}^{NC} \frac{DC_i}{NL_i}\right ) \times \frac{100 \times rate}{frequency} \right ) \right ) - \left ( par+\left ( \left ( \sum_{i=1}^{NC} \frac{A_i}{NL_i} \right ) \times \frac{100 \times rate}{frequency} \right ) \right )}{par+\left ( \left ( \sum_{i=1}^{NC} \frac{A_i}{NL_i}\right ) \times \frac{100 \times rate}{frequency}\right )} \right ]$
$\times \left [ \frac{frequency}{\left ( \sum_{i=1}^{NC}\frac{DSC_i}{NL_i} \right )} \right ]$
Where,
Ai = number of accrued days for the ith, or last, quasi-coupon period within odd period counting forward from last interest date before redemption.
DCi = number of days counted in the ith, or last, quasi-coupon period as delimited by the length of the actual coupon period.
NC = number of quasi-coupon periods that fit in odd period; if this number contains a fraction it will be raised to the next whole number.
NLi = normal length in days of the ith, or last, quasi-coupon period within odd coupon period.
Dates should be entered by using the DATE Function, or as results of other formulas or functions. For example, use DATE (2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text
Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900
The settlement date is the date a buyer purchases a coupon, such as a bond
The maturity date is the date when a coupon expires
For example, suppose a 30-year bond is issued on January 1, 2008, and is purchased by a buyer six months later, then −
the issue date would be January 1, 2008
the settlement date would be July 1, 2008
the maturity date would be January 1, 2038, which is 30 years after the January 1, 2008, issue date
Settlement, maturity, last_interest, and basis are truncated to integers.
If settlement, maturity, or last_interest is not a valid date, ODDLYIELD returns the #VALUE! error value.
If any of the specified arguments is non-numeric, ODDLYIELD returns the #VALUE! error value.
If rate < 0 or if pr ≤ 0, ODDLYIELD returns the #NUM! error value.
If basis < 0 or if basis > 4, ODDLYIELD returns the #NUM! error value.
The following date condition must be satisfied; otherwise, ODDLYIELD returns the #NUM! error value −
maturity ≥ settlement ≥ last_interest
Applicability
Excel 2007, Excel 2010, Excel 2013, Excel 2016