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The Excel ODDLYIELD Function
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)
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| maturity |
- |
The maturity date of the security (ie. the date that the coupon expires)
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| last_interest |
- |
The date of the security's last coupon
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| rate |
- |
The security's interest rate
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| pr |
- |
The security's price
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| redemption |
- |
The security's redemption value per $100 face value
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| frequency |
- |
The number of coupon payments per year. This must be one of the following:
| 1 | - | Annually |
| 2 | - | Semi-Annually |
| 4 | - | Quarterly |
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| [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
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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:
- 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 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:
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As recommended, the date arguments are supplied to the function as references to cells containing dates.
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As the [basis] argument has been omitted, the function uses the default value 0 (denoting the US (NADS)
30/360 day count basis).
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
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#NUM!
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-
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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)
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#VALUE!
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-
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Occurs if either:
| - | any of the supplied arguments are non-numeric |
| or | |
| - | any of the supplied date arguments are not a valid Excel dates |
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#NAME?
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-
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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.
To do this in Excel 2003 :
- From the Tools drop-down menu, select the option Add-Ins ...
- An 'Add-Ins' window will pop up. From this, select the option Analysis ToolPak and click OK
To do this in Excel 2007 or Excel 2010 :
- Click the Microsoft button on the top left of your spreadsheet and select
the Excel Options button
- From the menu on the left hand side, select Add-Ins
- In the 'Manage:' box, select Excel Add-ins and click Go...
- An 'Add-Ins' window will pop up. From this, select the option Analysis ToolPak
and click OK
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