Hi Greg,
The yield function in excel does not give the right value if I play around with the redemption value(% of par). I have checked this with other available online bond yield calculators such as http://www.moneychimp.com/calculator...e=calc_bondytm

If I change the redemption value to 50 and the bond price to $50, ideally the coupon rate and the yield should be equal for any time period. While this happens in the calculator mentioned above, Excel gives me a different number. Is this actually a bug or am I missing the point?

Test this in Excel...

=YIELD("6/30/2009","6/30/2022",0.0958,50,50,2,0)

Also test different redemption and price values and compare them with the calculator above.



Greg Lovern wrote:

Problem with Yield() function
29-Dec-08

Thanks, apparently the error only happens at unrealistically high
rates (such as 500% in this case..), and therefore doesn't matter.

I was testing with randomly generated input values, not limiting the
test to realistic values. I changed the test to keep the rate down,
and at those rates the error doesn't seem to occur.


Greg


On Dec 27, 4:06=A0pm, Ron Rosenfeld wrote:
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