Financial
YIELD function: solve for bond yield to maturity from clean price
Calculate annualized bond yield to maturity from settlement, maturity, coupon rate, and clean market price per $100 par using YIELD.
Annualized yield to maturity from clean bond price
YIELD(settlement, maturity, rate, pr, redemption, frequency, [basis]) solves for the annualized yield to maturity that equates the clean price of a bond to pr.
When a 5.0% coupon bond trades at a discount clean price of 98.50, its yield to maturity (5.30%) is higher than its coupon rate.
=ROUND(YIELD(B2, B3, B4, B5, B6, B7, B8), 4)Try the example
Use the original values or change them to test your understanding.