How To Use Excel Yield Function

Yield settlement maturity rate pr redemption frequency basis settlement settlement date of the security.

How to use excel yield function. So nper is 5 x 2 10. Use yield to calculate bond yield. We get the result below. Rate nper pmt pv fv type guess here nper total number of periods of the bond maturity. Yield c9 c10 c7 f5 c6 c12 c13 with these inputs the yield function returns 0 08 which or 8 00 when formatted with the percentage number format.

Here the price of the security argument pr and redemption argument redemption is entered as the value per 100 regardless of the actual face value of the security. A few things to remember about the yield function. Excel yield function is used to calculate on a security or a bond which pays the interest periodically the yield is a type of financial function in excel which is available in the financial category and is an inbuilt function which takes settlement value maturity and rate with bond s price and redemption as an input. Yield function is excel returns is calculated using some arguments based on terms on security. We can use the function to find out the yield.

Yield c4 c5 c6 c7 c8 c9 c10 the yield function returns the yield of security. Yield function helps to calculate the yied on a security that pays periodic interest. The formula to use will be. Purpose of excel yield function. Helps to get yield for security that pays periodic interest.

In simple words the yield function is used to determine the bond yield. Check out the image below. The excel yield function is categorised under financial function. Years to maturity of the bond is 5 years. We used as the basis the us nasd 30 360 day basis.

Useful in arriving at bond yields. Double click on yield function. You can use excel s rate function to calculate the yield to maturity ytm. The yield function returns the yield on a security that pays periodic interest. As recommended by microsoft the date arguments were entered as references to cells containing dates.