- sd - Settlement date of the security.
- md - Maturity date of the security.
- id - Issue date of the security.
- rate - Interest rate of security.
- pr - Price per $100 face value.
- basis - [optional] Coupon payments per year (annual = 1, semiannual = 2; quarterly = 4).
The YIELDMAT function returns the annual yield of a security that pays interest at maturity. In the example shown, the formula in F5 is:
with these inputs, the YIELDMAT function returns 0.081 which, or 8.10% when formatted with the percentage number format.
In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell references, as shown in the example. If you want to enter valid dates directly inside a function, the DATE function is the best approach.
The basis argument controls how days are counted. The PRICE function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis. This article on Wikipedia provides a detailed explanation of available conventions.
|0 or omitted||US (NASD) 30/360|
- In Excel, dates are serial numbers.
- Settlement, maturity issue, and basis are truncated to integers
- If settlement, maturity, or issue dates are not valid, YIELDMAT returns #VALUE!
- YIELDMAT returns #NUM! if any of the following are true:
- rate < 0
- pr <= 0
- settlement >= maturity
- Basis is not 0-4