I continue to not quite understand the difference between YIELD() and
YIELDMAT(). I have a bond that I buy on 5/3/2012 that matures on 6/1/2032.
It pays a 7.25% coupon. I buy it for 50% of par value.

YIELD() gives me 15.3% using this formula:

=YIELD(DATE(2012,5,3),DATE(2032,6,1),7.25%,50%*100 ,100,2)

YIELDMAT() gives me 19.5% using this formula:


=YIELDMAT(DATE(2012,5,3),DATE(2032,6,1),DATE(2012, 5,2),7.25%,50%*100)

What I am trying to solve for is the yield until maturity. What is it that
YIELD() gives me and why is it so much lower than YIELDMAT()?

A related question: YIELDMAT() takes an "issue date" but if you put in the
actual issue date of the bond many years ago, YIELDMAT() is making you pay
accrued interest on the ENTIRE TIME PERIOD since first issuance. Based on
that, it appears that what you actually need to put into the Issue field for
YIELDMAT() is the date that the bond *last* paid interest, so that the
correct amount of accrued interest is extracted?

I am confused why YIELD() requires a "redemption value" when YIELDMAT() does
not.

I also don't understand why YIELDMAT() omits a "Frequency" whereas YIELD()
does not.

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W