ODDLYIELD
The yield of a security whose last period is short or long.
Group: Financial. Compatible with DAX.
Syntax
ODDLYIELD ( <settlement>, <maturity>, <last_interest>, <rate>, <pr>, <redemption>, <frequency> [, <basis>] )| Parameter | Type | Description |
|---|---|---|
settlement | Date | The day the buyer takes the security over; later than its issue. |
maturity | Date | The day the security ends and its face value is repaid. |
last_interest | Date | The day of the last coupon before maturity; before settlement. |
rate | Number | The coupon: the interest paid a year, as a decimal of the face value (0.04 for 4 %). |
pr | Number | What the buyer pays, in percent of the face value: 98.5 for 98.5 %. |
redemption | Number | What is repaid at maturity, in percent of the face value: usually 100. |
frequency | Whole number | Coupons a year: 1 for yearly, 2 for half-yearly, 4 for quarterly. |
basis | Whole number optional | The day count, by number: US 30/360 (0, when left out), actual/actual (1), actual/360 (2), actual/365 (3) or European 30/360 (4). |
Returns
Number. The yield a year, as a decimal.
Remarks
- The last period, from the last coupon to maturity, may be shorter or longer than the regular ones; the coupon paid at maturity is prorated by its length.
- With one payment left, the yield follows directly from the price: the gain to maturity over what is paid, spread over the time left.
- The dates must come in the order last coupon, settlement, maturity; otherwise the result is an error.
- A rate below 0, or a price or redemption of 0 or less, is an error. The dates are taken as whole days. frequency and basis are rounded to whole numbers first; a frequency other than 1, 2 or 4, or a basis outside 0 to 4, is an error.
Examples
Bought at 99.875
The bond of the ODDLPRICE page, bought on the same day at 99.875.
EVALUATE
ROW (
"Yield", ODDLYIELD ( DATE ( 2008, 2, 7 ), DATE ( 2008, 6, 15 ), DATE ( 2007, 10, 15 ), 0.0375, 99.875, 100, 2, 0 )
)| Yield |
|---|
| 0.0405927835051545 |