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Financial function

YIELD

Returns the yield of a bond from its price.

Rarely usedDifficulty 1650 · ExpertUsage rank #486 of 520
Practice · 2 questions →

When to use it

The annual yield of a coupon bond given its price.

The shape of it

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

Worked examples

  • From a price

    =YIELD(DATE(2008,2,15),DATE(2016,11,15),0.0575,95.04287,100,2,0) 6.50%

    A bond at 95.04 yields 6.5%.

  • At par

    =YIELD(DATE(2025,1,15),DATE(2035,1,15),0.05,100,100,2) 5.00%

    At par, yield equals the coupon.

  • Round trip

    =YIELD(DATE(2025,1,15),DATE(2035,1,15),0.05,108.18,100,2) 4.00%

    Reverses the PRICE example.

Worth knowing

  • Iterative; unusual inputs can fail to converge.
  • PRICE is the inverse.
  • Yield to maturity assumes coupons are reinvested at the same rate.

Where it goes wrong

  • #NUM! for invalid dates or a non-positive price.
  • Basis must match the bond's convention.

Related

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