The bond-related formulas and functions in the previous chapters assume that every period is the same length. For example, that coupon payments occur every three, six, or twelve months. Some bonds have irregular first or last periods, where the payment dates don’t fit any of those patterns. When you want to calculate the yield of a bond with an odd last period, use the ODDLYIELD function.
- [Instructor] The bond related formulas and functions…in the previous chapters assume…that every period is the same length.…For example, that coupon payments occur every…three, six, or 12 months.…Some bonds have irregular first or last periods,…where the payment dates don't fit any of those patterns.…So, Excel includes a set of functions…you can use to evaluate those securities.…In this movie, I will show you…how to calculate the yield of a security…with an odd last period.…As my sample file,…I will use OddLastYield_06_04,…which you can find in the chapter six folder…of the exercise files collection.…
To calculate the yield of a security with a known price…and other information,…we need to use the ODDLYIELD function.…That function requires a set of arguments for it to work.…First is the settlement date, that's in C3.…That's the date that you take possession of the security.…Next is the maturity date.…That's the date that the investment ends.…That's in C4.…In C5 we have the last interest date.…That's the date of the last interest payment.…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
- Analyzing simulation results
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Analyzing Simulation Results
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