Finance
Find the yield to maturity of a bond
=YIELD(B1,B2,B3,B4,100,2)How it works in Excel
- B1 is the settlement date.
- B2 is the maturity date.
- B3 is the coupon rate.
- B4 is the price per 100.
- 100 is the amount repaid.
- 2 means two coupons a year.
- Format the cell as a percentage.
- A bond priced below 100 yields more than its coupon.
The idea in general
It is the yearly return you lock in if you buy at this price and hold to the end.
What I assumed
- The dates are in B1 and B2, the coupon is in B3 and the price is in B4.
Check the result on your own data before relying on it.