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:
For a detailed explanation of the financial day count basis rules, see the Wikipedia Day Count Convention page.
Note that the date arguments must satisfy the following:
Also, the date arguments should be supplied to the function as either:
Warning: If you attempt to enter text representations of dates into Excel functions, 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 details and examples of the Excel Oddlyield function are provided on the Microsoft Office website.
If you get an error from the Oddlyield function, this is likely to be one of the following: