January 20, 2022

How to use ODDFYIELD Function in Excel

The Excel ODDFYIELD function calculates the yield of a security with an odd (short or long) first period.

Syntax:= ODDFYIELD (sd, md, id, fd, rate, pr, redem, freq, [basis])

The ODDFYIELD 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.
• 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.
Basis Day count basis
0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

Example: Let’s look at some Excel ODDFYIELD function examples and explore how to use the ODDFYIELD function as a worksheet function in Microsoft Excel: Syntax:  =ODDFYIELD(B1,B2,B3,B4,B5,B6,B7,B8,B9)

Result: Based on the Excel spreadsheet above, the following ODDFYIELD examples would return:

Syntax: =ODDFYIELD(B1,B2,B3,B4,B5,B6,B7,B8,B9)
Result: 0.06814328

Syntax: =ODDFYIELD(DATE(2009,11,11),DATE(2022,3,1),DATE(2009,10,15),DATE(2010,3,1),0.0575,100,120,2,0)
Result: 0.06814328

Syntax: =ODDFYIELD(DATE(2009,11,11),DATE(2022,3,1),DATE(2009,10,15),DATE(2010,3,1),5.75%,B6,B7,B8,B9)
Result: 0.06814328

Note:

1. #NUM! error – Occurs when:
• The given issue date is greater than or equal to the settlement date.
• The given settlement date is greater than or equal to the first_coupon date.
• The first_coupon date given is greater than or equal to the maturity date.
• We provided invalid numbers for the rate, pr, redemption, frequency or [basis] arguments. That is if either rate is less than 0; pr is less than 0; redemption is less than or equal to 0; frequency is any number other than 1, 2, or 4; or [basis] is any number other than 0, 1, 2, 3, or 4).
2. #VALUE! error – Occurs when:
• The given settlement, maturity, issue or first coupon arguments are not valid Excel dates.
3. Any of the given arguments is non-numeric.
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