# Use

The YIELD function calculates a security’s yield that pays interest periodically, such as a bond. The function is one of the financial functions and was first introduced in the Excel 2007 version.

# Syntax

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

The function has the following arguments:

**settlement** – Required. After the issuance date, it is the date on which the bond is traded to the buyer.

**maturity** – Required. The date on which the bond will expire.

**rate** – Required. The coupon rate (annual) for the bond.

**pr** – Required. The price of the bond on which it was purchased.

**redemption** – Required. The redemption value of the bond on the expiry.

**Frequency** – Required. The coupon payment period.

**[basis]** – Optional. For calculation purpose, the day count basis to be used.

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

Suppose, you purchased a bond for $94 on June 05, 2019, it has the annual coupon rate of 8% with quarterly payments. On June 22, 2022, the maturity date of the bond, it redeems at $100.

Result:

# Function Errors

Error |
Occurs |

#VALUE! | If supplied dates are not valid |

#NUM! | If rate < 0 |

If pr ≤ 0 or if redemption ≤ 0 | |

If frequency is any number other than 1, 2, or 4 | |

If basis < 0 or if basis > 4 | |

If settlement ≥ maturity |