The Excel ODDLYIELD function calculates the yield of a security with an odd (short or long) last period.
The syntax of the function is :
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:|
The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page
The date arguments must satisfy the following:
Note also, that the date arguments should be supplied to the function as either:
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:
|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.
The following table lists the most common Oddlyield function errors, along with their causes:
Occurs when Analysis ToolPak add-in is not enabled in your Excel.