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YIELD function in Excel


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.


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


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.


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

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