The Excel YIELDMAT Function

Related Functions:

Function 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 (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.
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:

Basis Day Count Basis
0 (or omitted) US (NASD) 30/360
1 actual/actual
2 actual/360
3 actual/365
4 European 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   <   maturity

Also, the settlement, maturity and issue 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.

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-2017, with issue date 01-Jul-2014 and maturity date 30-Jun-2018. 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:

  A B
1 Settlement Date: 01-Jan-2017
2 Maturity Date: 30-Jun-2018
3 Issue Date: 01-Jul-2014
4 =YIELDMAT( B1, B2, B3, 5.5%, 101 )

The above Yieldmat function calculates the yield to be 4.21%.

Note that, in the above example:

For further examples of the Excel Yieldmat function, see 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
#NUM! -

Occurs if either:

  • The issue date is ≥ settlement date;
  • The settlement date is ≥ maturity date;
  • Invalid 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).

Occurs if either:

  • Any of the supplied arguments are non-numeric;
  • The supplied settlement, maturity or issue dates are not valid Excel dates.