YIELDP Function

YIELDP Function

Returns the yield-to-maturity for a periodic cash flow stream, such as a bond

Category: Financial

Syntax

YIELDP ( A,c,n,K,k ,p )

Arguments

A

• specifies the face value.

• Range: A > 0

c

• specifies the nominal annual coupon rate, expressed as a fraction.

• Range: ‰ c < 1

n

• specifies the number of coupons per year.

• Range: n > 0 and is an integer

K

• specifies the number of remaining coupons from settlement date to maturity.

• Range: K > 0 and is an integer

k

• specifies the time from settlement date to the next coupon as a fraction of the annual basis.

• Range:

p

• specifies the price with accrued interest.

• Range: p > 0

Details

The YIELDP function is based on the relationship

where

The YIELDP function solves for y .

Examples

The following example demonstrates the use of YIELDP with a face value of 1000, an annual coupon rate of 0.01, 4 coupons per year, 14 remaining coupons, time from settlement date to next coupon is 0.165, and the price with accrued interest is 800.

 data _null_;     y=yieldp(1000,.01,4,14,.165,800);  put y;  run; 

The value returned is 0.0775.