Returns the yield of a security that has an odd (short or long) last period.
If this function is not available, run the Setup program to install the Analysis ToolPak. After you install the Analysis ToolPak, you must enable it by using the Add-Ins command on the Tools menu.
Syntax
ODDLYIELD(settlement,maturity,last_interest,rate,pr,redemption,frequency,basis)
Settlement is 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 is the security's maturity date. The maturity date is the date when the security expires.
Last_interest is the security's last coupon date.
Rate is the security's interest rate.
Pr is the security's price.
Redemption is the security's redemption value per $100 face value.
Frequency is the number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.
Basis is the type of day count basis to use.
Basis |
Day count basis |
0 or omitted |
US (NASD) 30/360 |
1 |
Actual/actual |
2 |
Actual/360 |
3 |
Actual/365 |
4 |
European 30/360 |
Remarks
maturity > settlement > last_interest
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
A bond has the following terms:
April 20, 1987, settlement date
June 15, 1987, maturity date
December 24, 1986, last interest date
3.75 percent coupon
$99.875 price
$100 redemptive value
Frequency is semiannual
30/360 basis
The yield of a security that has an odd (short or long) first period is:
ODDLYIELD("4/20/87","6/15/87","12/24/86",0.0375,99.875,100,2,0)
equals 0.045192