# The Excel YIELDMAT Function

Related Functions:
YIELD
YIELDDISC

## Basic Description

The Excel YIELDMAT function calculates the annual yield of a security that pays interest at maturity.

The syntax of the function is :

YIELDMAT( settlement, maturity, issue, rate, pr, [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)
issue-The issue date of the security
rate-The security's interest rate at date of issue
pr-The security's price per \$100 face value
[basis]-An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
4European 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:

issue   <   settlement   <   maturity

Note also, that the settlement, maturity and issue date arguments should be supplied to the function as either:

• References to cells containing dates
or
• Dates returned from formulas

Warning:

• If you input the date arguments as text, these may be misinterpreted, due to the date system and date interpretation settings on your computer.
• It is not recommended that you input the date arguments as serial numbers, as date serial numbering varies across different computer systems.

## Excel Yieldmat Function Example

In the following spreadsheet, the Excel Yieldmat function is used to calculate the annual yield for a security purchased on 01-Jan-2011, with issue date 01-Jul-2008 and maturity date 30-Jun-2012. The interest rate at date of issue is 5.5% and the security has a price of \$101 per \$100 face value. The US (NASD) 30/360 day count basis is used:

AB
1Settlement Date:01-Jan-2011
2Maturity Date:30-Jun-2012
3Issue Date:01-Jul-2008
4=YIELDMAT( B1, B2, B3, 5.5%, 101 )

This calculates the yield to be 4.21%.

Note that, in the above example:

• As recommended, the settlement, maturity and issue dates have been input as references to cells containing dates.
• The [basis] argument has been omitted, and so the function uses the default value 0 (denoting the US (NADS) 30/360 day count basis).

Further examples of the Excel Yieldmat function can be found on the Microsoft Office website.

## Yieldmat Function Errors

If you get an error from the Yieldmat function, this is likely to be one of the following:

Common Errors
 #VALUE! - Occurs if either:any of the supplied arguments are non-numericthe supplied settlement, maturity or issue dates are not valid Excel dates #NUM! - Occurs if either:the issue date is ≥ settlement datethe settlement date is ≥ maturity dateInvalid numbers are supplied for the rate, pr or basis arguments(i.e. if either: rate < 0; pr ≤ 0; or basis is any number other than 0, 1, 2, 3 or 4) #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 Yieldmat function.