The Excel ODDLYIELD Function

Related Function:
ODDFYIELD

Basic Description

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

The syntax of the function is :

ODDFYIELD( settlement, maturity, last_interest, 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)
last_interest - The date of the security's last 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:

last_coupon   <   settlement   <   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 Oddlyield Function Example

The following example shows the Excel Oddlyield function used to calculate the yield of a security with a last coupon date of 31-Jan-2011, a settlement date of 15-Apr-2011, and a maturity date 30-Jun-2011. The security's interest rate is 5%, the price is $99.50 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: 15-Apr-2011
2 Maturity Date: 30-Jun-2011
3 Last Coupon Date: 31-Jan-2011
4 =ODDLYIELD( B1, B2, B3, 5%, 99.5, 100, 4 )

The above Oddlyield function returns the value 7.36%.

Note that, in the above example:


Further information and examples of the Excel Oddlyield function can be found on the Microsoft Office website.


Oddlyield Function Errors

The following table lists the most common Oddlyield function errors, along with their causes:

Common Errors
#NUM! - Occurs if either:
- the last_coupon date is ≥ settlement date
or
- the settlement date is ≥ maturity date
or
- Invalid numbers are supplied for the rate, pr, redemption, frequency or basis arguments

(i.e. 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

#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
#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 Oddlyield function.

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