The ODDFYIELD function calculates the yield of a security with an odd first period.

ODDFYIELD takes 8 required arguments and 1 optional argument:

Syntax: ODDFYIELD(settlement, maturity, issue, first_coupon, rate, pr, redemption, frequency, [basis])

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 10-year bond is issued on January 1, 2014, and is purchased by a buyer seven months later. The issue date would be January 1, 2014, the settlement date would be August 1, 2014, and the maturity date would be January 1, 2024, 10 years after the January 1, 2014, issue date.

#1)
Using the ODDFYIELD function:
#2)
The arguments for the ODDFYIELD function are:
Argument Required? Description
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.
first_coupon Required The security's first coupon date.
rate Required The security's interest rate
pr Required The security's price.
redemption Required The security's redemption value per $100 face value.
frequency Required The number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.
basis Optional The type of day count basis to use.
Possible basis argument values:
#3)
A few more things:
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, 2014 is serial number 41640 because it is 41,640 days after January 1, 1900.
settlement , maturity , frequency, and basis are truncated to integers.
If settlement, maturity , issue or first_coupon is not a valid date, ODDFYIELD returns the #VALUE! error value.
If rate < 0 or if yld < 0, ODDFYIELD returns the #NUM! error value.
If basis < 0 or if basis > 4, ODDFYIELD returns the #NUM! error value.
The following date condition must be satisfied; otherwise, ODDFYIELD returns the #NUM! error value:
maturity > first_coupon > settlement > issue
Excel uses an iterative technique to calculate ODDFYIELD. This function uses the Newton method based on the formula used for the function ODDFPRICE. The yield is changed through 100 iterations until the estimated price with the given yield is close to the price. See ODDFPRICE for the formula that ODDFYIELD uses.

Summary

The ODDFYIELD function calculates the yield of a security with an odd first period.
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