Microsoft Office Tutorials and References
In Depth Information
Using YIELD to Calculate a Bond’s Yield
frequency
frequency This is the number of coupon payments per year. For an-
nual payments, frequencyis 1; for semiannual, frequencyis 2; and for
quarterly, frequencyis 4.
basis
basis This is the type of day count basis to use. It defaults to 0,
which is appropriate for U.S. bonds.
The settlement, maturity, frequency, and basisarguments are truncated to in-
tegers. If settlementor maturityis not a valid date, YIELD returns a #NUM!
error. If rateis less than 0, YIELD returns a #NUM! error. If pris less than
or equal to 0 or if redemptionis less than or equal to 0, YIELD returns a
#NUM! error. If frequencyis any number other than 1, 2, or 4, YIELD returns
a #NUM! error. If basisis less than 0 or if basisis greater than 4, YIELD
returns a #NUM! error. If settlementis greater than or equal to maturity,
YIELD returns a #NUM! error.
Figure 13.16 shows an example of YIELD.
Figure 13.16.
Figure 13.16. Use
Use YIELD
YIELD to calculate the yield rate for a bond. In these ex-
to calculate the yield rate for a bond. In these ex-
amples, the price in row 4 changes.
amples, the price in row 4 changes.
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