YIELDMAT

YIELDMAT

Returns the annual yield of a security that pays interest at maturity.

If this function is not available, run the Setup program to install the Analysis ToolPak. After you install the Analysis ToolPak, you must enable it by using the Add-Ins command on the Tools menu.

Syntax

YIELDMAT(settlement,maturity,issue,rate,pr,basis)

Settlement   is the security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

Maturity   is the security's maturity date. The maturity date is the date when the security expires.

Issue   is the security's issue date, expressed as a serial date number.

Rate   is the security's interest rate at date of issue.

Pr   is the security's price per $100 face value.

Basis   is the type of day count basis to use.

Basis

Day count basis

0 or omitted

US (NASD) 30/360

1

Actual/actual

2

Actual/360

3

Actual/365

4

European 30/360


Remarks

  • 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, 1996, and is purchased by a buyer six months later. The issue date would be January 1, 1996, the settlement date would be July 1, 1996, and the maturity date would be January 1, 2026, which is 30 years after the January 1, 1996, issue date.
  • Settlement, maturity, issue, and basis are truncated to integers.
  • If any argument is nonnumeric, YIELDMAT returns the #VALUE! error value.
  • If settlement, maturity, or issue is not a valid date, YIELDMAT returns the #NUM! error value.
  • If rate < 0 or if pr £ 0, YIELDMAT returns the #NUM! error value.
  • If basis < 0 or if basis > 4, YIELDMAT returns the #NUM! error value.
  • If settlement ³ maturity, YIELDMAT returns the #NUM! error value.

Example

A bond has the following terms:

March 15, 1993, settlement date
November 3, 1993, maturity date
November 8, 1992, issue date
6.25 percent semiannual coupon
100.0123 price
30/360 basis

The yield (in the 1900 date system) is:

YIELDMAT("3/15/93","11/3/93","11/8/92",0.0625,100.0123,0) equals 0.060954 or 6.0954 percent