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ODDLYIELD function in Excel

Use

The ODDLYIELD function calculates the yield of a security that has an odd (irregular) last period.

Syntax

ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, [basis])

The ODDLYIELD function has the following arguments:

settlement – Required. The date on which the security is traded to a buyer.

maturity – Required. The maturity date of the security. The date on which the security expires.

last_interest – Required. The last coupon date for the security.

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 frequency (no) of coupon payments in a year. Available options are:

For Frequency
Annual Payments1
Semiannual2
Quarterly4

[basis] – Optional. The day count basis that will be used for the calculation. Choose your option from the available options:

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

If omitted, Excel uses 0 by default.

Example

Suppose, you purchased a $100 bond for $99.56 on June 01, 2020. The bond will expire on August 15, 2020, with the redemption value of $100. The last interest date of the bond was January 20, 2020. Let’s calculate the yield of the bond with the ODDLYIELD function.

The bond with the above terms has the yield of 7.52%.

Function Errors

ErrorOccurs
#VALUE!If the supplied settlement, maturity, or last_interest date is invalid.
#NUM!If the rate is smaller than zero, or the price is equal to/ smaller than zero.
#NUM!If the [basis] argument is smaller than 0 or greater than 4.

Related Functions

ODDFPRICE function calculates the price of a bond having an irregular first period.

ODDFYIELD function calculates the yield of a security that has an irregular (short or long) first period.

ODDLPRICE function calculates the price per $100 face of a security having an irregular/odd (short or long) last coupon period.




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