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:
- #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).
- #VALUE! error – Occurs when:
- The given settlement, maturity, issue or first coupon arguments are not valid Excel dates.
- Any of the given arguments is non-numeric.
