# The Excel ODDFYIELD Function

Related Function:
ODDLYIELD

## Basic Description

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

The syntax of the function is :

ODDFYIELD( settlement, maturity, issue, first_coupon, rate, pr, redemption, frequency, [basis] )

Where the arguments are as follows:

settlement-The settlement date of the security (ie. the date that the coupon is purchased)
maturity-The maturity date of the security (ie. the date that the coupon expires)
issue-The issue date of the security
first_coupon-The date of the security's first coupon
rate-The security's interest rate
pr-The security's price
redemption-The security's redemption value per \$100 face value
frequency-The number of coupon payments per year. This must be one of the following:
 1 - Annually 2 - Semi-Annually 4 - Quarterly
[basis]-An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
4European 30/360
The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page

The date arguments must satisfy the following:

issue   <   settlement   <   first_coupon   <   maturity

Note also, that the date arguments should be supplied to the function as either:

• References to cells containing dates
or
• Dates returned from other functions or formulas

Warning:

• If you input the date arguments as text, these may be interpreted differently, depending on the date system and date interpretation settings on your computer.
• You can input the date arguments as serial numbers, but this is not recommended, as date serial numbering varies across different computer systems.

## Excel Oddfyield Function Example

The following example shows the Excel Oddfyield function used to calculate the yield of a security with an issue date of 15-Mar-2011, a settlement date of 01-May-2011, a first coupon date of 30-Jun-2011, and a Maturity date 30-Jun-2015. The security's interest rate is 5.5%, the price is \$102 and the redemption value is \$100. Payments are made quarterly and the US (NASD) 30/360 day count basis is used:

AB
1Settlement Date:01-May-2011
2Maturity Date:30-Jun-2015
3Issue Date:15-Mar-2011
3First Coupon Date:30-Jun-2011
4=ODDFYIELD( B1, B2, B3, B4, 5.5%, 102, 100, 4 )

In this example, the yield is calculated to be 4.65%.

Note that, in the above example:

• As recommended, the date arguments have been input as references to cells containing dates.
• The [basis] argument has been omitted. Therefore, the function uses the default value 0 (denoting the US (NADS) 30/360 day count basis).

Further examples of the Excel Oddfyield function can be found on the Microsoft Office website.

## Oddfyield Function Errors

If you get an error from the Oddfyield function, this is likely to be one of the following:

Common Errors
 #VALUE! - Occurs if either:any of the supplied arguments are non-numericany of the supplied date arguments are not a valid Excel dates #NUM! - Occurs if either:the issue date is ≥ settlement datethe settlement date is ≥ first_coupon datethe first_coupon date is ≥ maturity dateInvalid numbers are supplied for the rate, pr, redemption, frequency or basis arguments(i.e. if either: rate < 0; pr ≤ 0; redemption ≤ 0; frequency is any number other than 1, 2 or 4; or basis is any number other than 0, 1, 2, 3 or 4) #NAME? - Occurs when Analysis ToolPak add-in is not enabled in your Excel.You will need to enable the add-in if you want to use the Excel Oddfyield function.