YIELD Function Explained
The YIELD function in Microsoft Excel calculates the yield on a security that pays periodic interest. It returns the yield on a security that pays periodic interest, taking into account the current price, the coupon rate, the number of payments per year, the face value of the security, and the type of day count basis to use.
YIELD Function Syntax
YIELD(settlement, maturity, rate, pr, redemption, frequency, [basis])
- 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.
- maturity: The security’s maturity date. The maturity date is the date when the security expires.
- rate: The security’s annual coupon rate.
- 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. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.
- basis: (optional) The type 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.