Financial Formulas: Yield

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Financial Formulas: Yield

Does Numbers have an equivalent formula to the Yield formula in Excel? Given a settlement date, price, coupon, maturity, recovery assumption, basis and frequency of interest pmts is there a formula in Numbers to calc the Yield? Thanks!!

MacBook Pro, Mac OS X (10.4.10), 2.2Ghz Intel Core 2 Duo 2GB SDRAM

Posted on Aug 21, 2007 8:22 PM

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Answer 1

Aug 22, 2007 8:13 AM in response to wolffish00

Unfortunately, the answer is no.

I have looked at the documentation in Excel, and I think I could write a formula for calculating the yield with one coupon or less to redemption, but it says it uses the "Newton method" to calculate through 100 iterations for more than one coupon to redemption.

I think this may beyond the power of Numbers in it's current state.

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Answer 2

wolffish00 Author

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Aug 22, 2007 8:03 PM in response to Apple fan Michael

Thanks Michael. I was afraid that would be the answer. Hopefully it will be added to a future update.

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Answer 3

Aug 25, 2007 7:24 PM in response to wolffish00

While YIELD isn't there as a function, it doesn't mean that Numbers cannot be used to do these calcs. The work becomes a bit more ... old school. I agree that it will be nice to see iterative or goal seeking functions in Numbers.

A general discussion of yield:
http://www.investopedia.com/university/advancedbond/advancedbond3.asp

A Microsoft explanation of the YIELD function as implemented in Office 2003:
http://office.microsoft.com/en-us/excel/HP052093451033.aspx

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