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:
Basis Day Count Basis
0 (or omitted) US (NASD) 30/360
1 actual/actual
2 actual/360
3 actual/365
4 European 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:

or

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:

  A B
1 Settlement Date: 01-May-2011
2 Maturity Date: 30-Jun-2015
3 Issue Date: 15-Mar-2011
3 First 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:


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-numeric
or
- any of the supplied date arguments are not a valid Excel dates
#NUM! - Occurs if either:
- the issue date is ≥ settlement date
or
- the settlement date is ≥ first_coupon date
or
- the first_coupon date is ≥ maturity date
or
- Invalid 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.

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