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 (i.e. the date that the coupon is purchased).|
|maturity||-||The maturity date of the security (i.e. the date that the coupon expires).|
|last_interest||-||The security's last coupon date.|
|rate||-||The security's interest rate.|
|pr||-||The security's price.|
|redemption||-||The security's redemption value per $100 face value.|
An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:
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:
Warning: If you attempt to input the date arguments as text, these can be interpreted differently, depending on the date system and date interpretation settings on your computer.
The following example shows the Excel Oddlyield function used to calculate the yield of a security with a last interest 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 Interest 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: