This article describes the formula syntax and usage of the YIELD function in Microsoft Excel.

Description

Returns the yield on a security that pays periodic interest. Use YIELD to calculate bond yield.

Syntax

YIELD(settlement, maturity, rate, pr, redemption, frequency, [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 YIELD function syntax has the following arguments:

BasisDay count basis
0 or omittedUS (NASD) 30/360
1Actual/actual
2Actual/360
3Actual/365
4European 30/360

Remarks

Example

Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

DataDescription
15-Feb-08Settlement date
15-Nov-16Maturity date
5.75%Percent coupon
95.04287Price
$100Redemption value
2Frequency is semiannual (see above)
030/360 basis (see above)
FormulaDescription (Result)Result
=YIELD(A2,A3,A4,A5,A6,A7,A8)The yield, for the bond with the terms above (0.065 or 6.5%)6.5%

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