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Financial - ODDFYIELD Function
Description
The ODDFYIELD function returns the yield of a security that has an odd (short or long) first period.
Syntax
ODDFYIELD (settlement, maturity, issue, first_coupon, 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 |
| Issue | The security's issue date. | Required |
| First_coupon | The security's first 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/36 |
| 3 | Actual/36 |
| 4 | European 30/360 |
Notes
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, issue, first_coupon, and basis are truncated to integers.
If settlement, maturity, issue, or first_coupon is not a valid Excel date, ODDFYIELD returns the #VALUE! error value.
If any of the specified arguments is non-numeric, ODDFYIELD returns the #VALUE! error value.
If rate < 0 or if pr ≤ 0, ODDFYIELD returns the #NUM! error value.
If frequency is any number other than 1, 2, or 4, ODDFYIELD returns the #NUM! error value If basis < 0 or if basis > 4, ODDFYIELD returns the #NUM! error value.
The following date condition must be satisfied; otherwise, ODDFYIELD returns the #NUM! error value −
maturity ≥ first_coupon ≥ settlement ≥ issue
Excel uses an iterative technique to calculate ODDFYIELD. This Function uses the Newton method based on the formula used for the Function ODDFPRICE. The yield is changed through 100 iterations until the estimated price with the given yield is close to the price. Refer ODDFPRICE Function for the formula that ODDFYIELD uses.
Applicability
Excel 2007, Excel 2010, Excel 2013, Excel 2016
Example
