# ODDFYIELD

The ODDFYIELD function calculates the yield of a security that has an odd (irregular) first period.

## Syntax

=ODDFYIELD(`Settlement`

, `Maturity`

, `Issue`

, `First_coupon`

, `Rate`

, `Pr`

, `Redemption`

, `Basis`

)

`Settlement` | The security's settlement date. |

`Maturity` | The security's maturity date. |

`Issue` | The security's issue date. |

`First_coupon` | The date of the security's first interest payment. |

`Rate` | The security's annual coupon rate. |

`Pr` | The price per $100 face value of the security. |

`Redemption` | The security's redemption value per $100 face value. |

`Basis` | The day-count basis to use. |

`Basis` (Optional) | The day-count basis to use. Defaults to 0 if omitted. |

## About ODDFYIELD

When dealing with securities that have irregular first coupon periods, the ODDFYIELD function in Excel comes to the rescue. This function is handy for calculating the yield of such securities, providing financial analysts and investors with a valuable tool to assess investment returns accurately. ODDFYIELD is particularly useful for bonds and other fixed-income securities that have unique payment structures at the start of their lifecycle. By allowing for customization of the yield calculation based on specific irregularities in the security's payment schedule, ODDFYIELD enhances the precision of financial analyses and decision-making processes. Utilize ODDFYIELD to delve into the nuances of securities with anomalous initial coupon periods, ensuring that your yield calculations align with the distinctive features of the investment instrument.

## Examples

Suppose you invest in a bond with an irregular first coupon period, settling on March 1, 2022. The bond matures on December 31, 2025, was issued on January 1, 2022, and the first coupon payment is on October 1, 2022. The bond has a coupon rate of 6%, a price of $95.50, a redemption value of $100, and uses the actual/actual day-count basis. To calculate the yield of this bond, you can use the ODDFYIELD formula: =ODDFYIELD("3/1/2022", "12/31/2025", "1/1/2022", "10/1/2022", 0.06, 95.50, 100, 1)

Consider an investment in a security with a unique coupon payment structure where the settlement date is July 15, 2021. The security matures on June 30, 2023, was issued on January 1, 2021, and the first interest payment date is April 1, 2021. The security offers a 4.5% coupon rate, has a price of $98.20, a redemption value of $100, and employs the 30/360 day-count basis. To determine the yield of this security, you can utilize the ODDFYIELD function as follows: =ODDFYIELD("7/15/2021", "6/30/2023", "1/1/2021", "4/1/2021", 0.045, 98.20, 100, 0)

## Notes

The ODDFYIELD function assumes valid Excel date values or references to cells containing valid date values for the relevant dates provided as input. It is essential to ensure the accuracy and consistency of the input data, such as coupon rates, prices, and redemption values, to obtain precise yield calculations. Adjust the function parameters according to the specific characteristics and irregularities of the security under evaluation.

## Questions

**How does the ODDFYIELD function differ from the YIELD function in Excel?**

Unlike the YIELD function, which calculates the yield for securities with regular payment structures, the ODDFYIELD function is specifically designed for securities with irregular first coupon periods. ODDFYIELD accounts for the unique payment schedule of such securities, offering a tailored approach to yield calculation to accommodate the irregularities in the security's cash flows.

**Can I use the ODDFYIELD function for bonds with consistent coupon payment dates?**

While the ODDFYIELD function is primarily intended for securities with irregular first coupon periods, it can still be used for bonds with regular coupon payment dates. However, its true utility shines when applied to securities with unique initial coupon payment structures, where standard functions may fall short in providing accurate yield calculations.

**How does the ODDFYIELD function handle irregular coupon payment schedules?**

The ODDFYIELD function takes into account the irregular first coupon period of a security when calculating its yield. By allowing flexibility to specify the dates of the settlement, maturity, issue, and first coupon payment, ODDFYIELD adjusts the yield calculation to reflect the distinct payment pattern of the security, ensuring a more precise assessment of investment returns.

## Related functions

YIELD

YIELDMAT

YIELDDISC

PRICE

PRICEDISC

PRICEMAT

ODDFPRICE

ODDLYIELD