YIELDMAT

Definition

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

Sample Usage

Syntax

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

IMPORTANT: 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.

The YIELDMAT function syntax has the following arguments:

• Settlement    Required. 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    Required. The security's maturity date. The maturity date is the date when the security expires.

• Issue    Required. The security's issue date, expressed as a serial date number.

• Rate    Required. The security's interest rate at date of issue.

• Pr    Required. The security's price per $100 face value.

• Basis    Optional. The type of day count basis to use.

Remarks

• 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. The issue date would be January 1, 2008, the settlement date would be July 1, 2008, and the maturity date would be January 1, 2038, which is 30 years after the January 1, 2008, issue date.

• Settlement, maturity, issue, and basis are truncated to integers.

• If settlement, maturity, or issue is not a valid date, YIELDMAT returns the #VALUE! 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 ≥ maturity, YIELDMAT returns the #NUM! error value.

In order to use the YIELDMAT formula, start with your edited Excellentable

Then type in the YIELDMAT formula in the area you would like to display the outcome:

By adding the values you would like to calculate the YIELDMAT formula for, Excellentable will generate the outcome: