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.
- [Voiceover] The bond related formulas and functions…in the previous chapters…assumed 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, though,…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.…My sample file is OddLastYield_06_04,…and you can find it in the chapter six folder…of an exercise files collection.…
We need to know a fair amount of information…to evaluate this kind of security.…The first is the settlement date,…and that is the date that you actually…take possession of the security.…Maturity date is the date that the bond will end…and the company or individual you bought it from…will need to return the principal and accumulated interest.…Next is the last interest date,…and in this case what we see is that…the last interest was paid on this bond…
- 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
Skill Level Intermediate
Accounting Foundations: Fundamentalswith Earl Kay Stice2h 46m Appropriate for all
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. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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