YIELD Function in Google Sheets

Calculate the annual yield of a bond using the YIELD function.

YIELD Function

The YIELD function in Google Sheets calculates the annual yield of a bond based on its price and other parameters.

Syntax

YIELD(settlement, maturity, rate, price, redemption, frequency, [day_count_convention])
  • settlement: The settlement date of the bond. This is a required parameter.
  • maturity: The maturity date of the bond. This is a required parameter.
  • rate: The bond’s annual coupon rate. This is a required parameter.
  • price: The price of the bond. This is a required parameter.
  • redemption: The bond’s redemption value per $100 face value. This is a required parameter.
  • frequency: The number of coupon payments per year (1, 2, or 4). This is a required parameter.
  • day_count_convention: (Optional) The day-count convention to use. Default is 0 (actual/actual).

Examples

  1. Basic Calculation

Calculate the annual yield of a bond:

=YIELD(DATE(2023,1,1), DATE(2030,1,1), 0.05, 95, 100, 2)

This will output the bond’s annual yield.

Notes

  • Ensure that the settlement date is before the maturity date.
  • The function is commonly used in bond valuation.
  • YIELDDISC: Calculate the annual yield of a discounted security.
  • YIELDMAT: Calculate the annual yield of a bond that pays interest at maturity.