Excel YIELD Function - Formula, Examples, How to Use?

What Is YIELD Function In Excel?

The YIELD function in Excel belongs to the category of Financial function. It determines the yield on security, paying periodic interest. Users can apply the Excel YIELD function for evaluating a bond yield, which helps calculate the income generated in a year as the potential return.

For example, the table below contains the inputs required to determine a security’s yield (in percentage).

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Frequently Asked Questions (FAQs)

1. Where is the YIELD function in Excel?

The YIELD function in Excel is in the Formulas tab. We can select Formulas → Financial → YIELD to access the function.

2. What is the settlement in the YIELD function in Excel?

The settlement in the YIELD function in Excel indicates the date a buyer trades a coupon, such as a security or bond. For example, a 10-year bond issue date is 1/1/2010, and a buyer purchases it four months later. Then the settlement date will be 5/1/2010.

3. How can you determine the yield of a security with a quarterly coupon payment frequency and Actual/actual basis type using the Excel YIELD function?

We can determine the yield of a security with a quarterly coupon payment frequency and Actual/actual basis type using the Excel YIELD function in the following way.

Let us see the steps with an example.

The below table contains the required input for calculating the yield of a specific security.

In this example, the coupon payment frequency is quarterly. So, the frequency argument value is 4. And the day count basis type is Actual/actual. Hence, the basis argument value is 1.

Suppose the requirement is to show the calculated yield value in cell B13. Then, here is how we can apply the Excel YIELD function in the target cell and get the yield value.

• Step 1: Select the target cell B13, enter the YIELD() provided in the Formula Bar in the below image, and press Enter.

• Step 2: Select cell B13 and set the data format as Percentage using the Number Format option in the Home tab.

Thus, the YIELD() evaluates the yield of a security, with quarterly coupon payment frequency and Actual/actual day count basis type, as 3.86%.

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