The Excel ODDFYIELD Function

Related Function:
ODDLYIELD

Function Description

The Excel ODDFYIELD function calculates the yield of a security with an odd (short or long) first period.

The syntax of the function is:

ODDFYIELD( settlement, maturity, issue, first_coupon, rate, pr, redemption, frequency, [basis] )

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).
issue-The issue date of the security.
first_coupon-The date of the security's first 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:

 1 - Annually 2 - Semi-Annually 4 - Quarterly
[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
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:

issue   <   settlement   <   first_coupon   <   maturity

Also, 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 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.

Excel Oddfyield Function Example

The following example shows the Excel Oddfyield function used to calculate the yield of a security with an issue date of 15-Mar-2017, a settlement date of 01-May-2017, a first coupon date of 30-Jun-2017, and a Maturity date 30-Jun-2021. The security's interest rate is 5.5%, the price is \$102 and the redemption value is \$100. Payments are made quarterly and the US (NASD) 30/360 day count basis is used:

AB
1Settlement Date:01-May-2017
2Maturity Date:30-Jun-2021
3Issue Date:15-Mar-2017
4First Coupon Date:30-Jun-2017
5=ODDFYIELD( B1, B2, B3, B4, 5.5%, 102, 100, 4 )

The above Oddfyield function calculates the yield to be 4.65%.

Note that, in the above example:

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

For further examples of the Excel Oddfyield function, see the Microsoft Office website.

Oddfyield Function Errors

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

Common Errors
 #NUM! - Occurs if either:The issue date is ≥ settlement date;The settlement date is ≥ first_coupon date;The first_coupon date is ≥ maturity date;Invalid numbers are supplied for the rate, pr, redemption, frequency or [basis] arguments.(I.e. if 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). #VALUE! - Occurs if either:Any of the supplied arguments are non-numeric;Any of the supplied date arguments are not a valid Excel dates.