Excel - Microsoft Excel Yield Function

Description

The Excel YIELD function calculates the Yield of a security that pays periodic interest 

The syntax of the function is : 

YIELD( settlement, maturity, rate, pr, redemption, frequency, [basis] ) 

Where the arguments are as follows: 

Note that the settlement and maturity arguments should be supplied to the function as either: 

• References to cells containing dates

or 

• Dates returned from formulas

Warning: 

Excel Yield Function Example

The following example shows the Excel Yield function used to calculate the yield on a coupon purchased on 01-Jan-2010, with Maturity date 30-Jun-2015 and a rate of 10%. The price per $100 face value is $101 and the redemption value is $100. Payments are made quarterly and the US (NASD) 30/360 day count basis is used: 

Calculates the yield to be 9.76%. 

Note that, in the above example, the [basis] argument has been omitted, so the default US (NASD) 30/360 day method is used. Note also that, as recommended, the date arguments have been input as references to cells containing dates. 

Yield Function Errors

If you get an error from the Yield function, this is likely to be one of the following: 

Common Errors