YIELDMAT
For a security that pays all its interest at maturity, the yield it earns per year.
Group: Financial. Compatible with DAX.
Syntax
YIELDMAT ( <settlement>, <maturity>, <issue>, <rate>, <pr> [, <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. |
issue | Date | The day the security was issued; 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 %. |
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 security pays all its interest at maturity. The yield is what that final payment earns, at simple interest, on the price plus the interest already accrued at settlement.
- The dates must come in the order issue, settlement, maturity; a coupon below 0, or a price of 0 or less, is an error.
- The dates are taken as whole days. basis is rounded to a whole number first; outside 0 to 4 it is an error.
Examples
A note bought just above 100
Issued 8 November 2007 at 6.25 %, bought 15 March 2008 at 100.0123, maturing 3 November 2008.
EVALUATE
ROW (
"Yield", YIELDMAT ( DATE ( 2008, 3, 15 ), DATE ( 2008, 11, 3 ), DATE ( 2007, 11, 8 ), 0.0625, 100.0123, 0 )
)| Yield |
|---|
| 0.0609543336915387 |