Related Function:

The YIELD function calculates the yield of a security that pays periodic interest

### Syntax

=YIELD(settlement,maturity,rate,pr,redemption,frequency,[basis])

#### Arguments

Argument Description
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
rate The security’s interest rate at date of issue
pr The security’s price per \$100 face value
redemption The security’s redemption value per \$100 face value
frequency The number of coupon payments per year. Must be one of the following:

 1 – Annually 2 – Semi-Annually 3 – Quarterly
[basis] Optional. Defines the day count basis to be used in the calculation

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

The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page

Note: The settlement and maturity dates should be input as either:

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

If you attempt to input these date arguments as text, Excel may misinterpret them, due to different date systems, or date interpretation settings.

Warning: Although you can input the date arguments as date serial numbers, this is not recommended as date serial numbering does vary across different computer systems.

#### Examples

A B C D
1 Data
2 15-Feb-2008 Settlement date
3 15-Nov-2016 Maturity date
4 5.75% Percent coupon
5 \$95.04287 Price
6 \$100.00 Redemption value
7 2 Frequency – semi-annual
8 0 30/360 basis
9
10 Formula Result Notes
11 =YIELD(A2,A3,A4,A5,A6,A7,A8) 6.5% The yield, for the bond with the terms above

Usage note: Use YIELD to calculate bond yield.

#### Common Function Error(s)

Problem What went wrong
#VALUE! Occurs if either:

 • any of the supplied arguments are non-numeric • the settlement or the maturity arguments are not a valid dates
#NUM! Occurs if either:

 • the settlement date is ≥ maturity date • invalid numbers are supplied for the rate, pr, redemption, frequency or [basis] arguments
#NAME? Occurs when Analysis ToolPak add-in is not enabled