YIELD

The YIELD function in Google Sheets is a powerful tool for calculating the annual yield of a security paying periodic interest, such as a US Treasury Bond, based on price.

Function Syntax and Parameters

Syntax: YIELD(settlement, maturity, rate, price, redemption, frequency, [day_count_convention])

Parameters:

• settlement: The date when the security is traded and purchased.
• maturity: The date when the security reaches maturity.
• rate: The annual interest rate of the security.
• price: The price at which the security is purchased.
• redemption: The redemption (or face) value of the security at maturity.
• frequency: The number of interest payments per year.
• day_count_convention (optional): [Optional] The day count convention used in the calculation.

Step-by-Step Tutorial

1. Calculating yield for a security:
   • Example: =YIELD(DATE(2022, 1, 1), DATE(2024, 1, 1), 0.05, 980, 1000, 2, 1)
   • Result: The yield will be calculated for the given security.

Use Cases and Scenarios

1. Investment Analysis: Determine the yield of a bond or security.
2. Financial Planning: Evaluate the potential return on investment.
3. Portfolio Management: Compare the yields of different securities.

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