# ODDLYIELD function

Returns the yield of a security that has an odd (short or long) last period.

## Syntax

ODDLYIELD(settlement,maturity,last_interest,rate,pr,redemption,frequency,basis)

Important

Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use =DATE(2008,5,23) for the 23rd day of May, 2008. Problems might occur if dates are entered as text.

Argument

Description

Remarks

settlement

The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

• If a valid date is not entered for this argument, this function returns the #VALUE! error value.

• If this argument contains a decimal value, this function ignores the numbers to the right side of the decimal point.

maturity

The security's maturity date. The maturity date is the date when the security expires.

• If a valid date is not entered for this argument, this function returns the #VALUE! error value.

• If this argument contains a decimal value, this function ignores the numbers to the right side of the decimal point.

last_interest

The security's last coupon date.

• None.

rate

The security's interest rate.

• If this argument is < 0, this function returns the #NUM! error value.

pr

The security's price.

• If this argument is ≤ 0, this function returns the #NUM! error value.

redemption

The security's redemption value per \$100 face value.

• None.

frequency

The number of coupon payments per year.

• 1 = annual

2 = semiannual

4 = quarterly

• If frequency is any number other than 1, 2, or 4, this function returns the #NUM! error value.

basis

The kind of day count basis to use.

• 0 or omitted = US (NASD) 30/360

1 = Actual/actual

2 = Actual/360

3 = Actual/365

4 = European 30/360

• If basis < 0 or if basis > 4, this function returns the #NUM! error value.

• If this argument contains a decimal value, this function ignores the numbers to the right side of the decimal point.

## General remarks

• Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.

• The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose that a 30-year bond is issued on January 1, 2008, and is purchased by a buyer six months later. The issue date would be January 1, 2008, the settlement date would be July 1, 2008, and the maturity date would be January 1, 2038, 30 years after the January 1, 2008, issue date.

• The following date condition must be satisfied; otherwise, this function returns the #NUM! error value: maturity > settlement > last_interest

• ODDLYIELD is calculated as follows:

Where:

Ai = number of accrued days for the ith, or last, quasi-coupon period within odd period counting forward from last interest date before redemption.

DCi = number of days counted in the ith, or last, quasi-coupon period as delimited by the length of the actual coupon period.

NC = number of quasi-coupon periods that fit in odd period; if this number contains a fraction it will be raised to the next whole number.

NLi = normal length in days of the ith, or last, quasi-coupon period within odd coupon period.

## Example

To make the following example easier to understand, you can copy the data to a blank sheet and then enter the function underneath the data. Do not select the row or column headings (1, 2, 3... A, B, C...) when you copy the sample data to a blank sheet.

 1 2 3 4 5 6 7 8 9
 A B Data Description April 20, 2008 Settlement date June 15, 2008 Maturity date December 24, 2007 Last interest date 3.75% Rate 99.875 Price 100 Redemption value 2 Semiannual frequency 0 30/360 basis Formula Description (Result) =ODDLYIELD(A2,A3,A4,A5,A6,A7,A8,A9) The yield of a security that has an odd (short or long) last period, for the bond with the terms above (0.045192)
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