What is the difference between ODDLYIELD and ODDFYIELD?

ODDLYIELD calculates yield for securities with an odd first or last coupon period, while ODDFYIELD specifically handles odd first periods only. ODDLYIELD is more versatile and applicable to a broader range of irregular bond structures. Choose ODDLYIELD when the irregularity could be in either the first or last period, and ODDFYIELD when you know the irregularity is exclusively in the first period.

How should I format the rate parameter in ODDLYIELD?

The rate parameter must be expressed as a decimal. For example, a 4.5% coupon rate should be entered as 0.045, not 4.5 or 4.5%. This decimal format is consistent across most Excel financial functions. Using percentage format will cause #VALUE! errors or incorrect calculations.

What does the basis parameter do, and which value should I use?

The basis parameter specifies the day-count convention used in interest calculations: 0 (30/360 US), 1 (Actual/360), 2 (Actual/365), 3 (Actual/Actual), and 4 (30/360 European). Corporate bonds typically use 0, government bonds often use 1, and international securities may use 2 or 3. Verify the specific bond's documentation to determine the correct basis.

Can ODDLYIELD handle bonds with multiple odd periods?

ODDLYIELD is specifically designed for securities with either an odd first period or an odd last period, not both simultaneously. If a security has multiple irregular periods, ODDLYIELD may not provide accurate results. In such cases, consider using alternative methods like RATE function with cash flow arrays or building a custom calculation model.

Why is my ODDLYIELD result different from the yield quoted by my broker?

Differences typically stem from: incorrect date formatting or chronology, mismatched day-count basis, wrong frequency specification, price entry errors (ensure it's per 100 face value), or timing of accrued interest calculations. Verify all parameters match the security's prospectus exactly. Some brokers may also quote yield-to-call or other yield variations rather than yield-to-maturity.

ODDLYIELD Function: Advanced Bond Yield Calculation for Irregular Coupon Periods

Advanced

=ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, [basis])

The ODDLYIELD function is a sophisticated financial tool designed for Excel users who need to calculate the yield of a security with an odd (irregular) first or last coupon period. Unlike standard yield calculations that assume regular payment intervals, ODDLYIELD accommodates securities where the initial or final interest payment doesn't follow the standard coupon frequency pattern. This is particularly valuable in fixed-income investment analysis, bond portfolio management, and financial modeling where securities are issued or mature between regular coupon dates. Understanding ODDLYIELD is essential for financial analysts, investment professionals, and treasury managers working with complex bond instruments. The formula accounts for the irregular timing of interest payments, ensuring accurate yield-to-maturity calculations that reflect the true return on investment. This advanced function requires careful attention to date parameters and frequency specifications, making it crucial for professionals managing institutional bond portfolios, calculating fair values for financial reporting, and performing detailed investment analysis.

Syntax & Parameters

The ODDLYIELD function employs eight parameters, with seven being mandatory and one optional, to calculate the yield on a security with an odd first or last coupon period. The settlement parameter specifies the security's settlement date—when the buyer receives the security. The maturity parameter defines when the security matures and the final payment occurs. The last_interest parameter indicates the date of the last coupon payment before settlement, which is critical for determining the irregular period. The rate parameter represents the annual coupon interest rate of the security as a decimal. The pr parameter is the security's price per 100 face value, expressed as a percentage. The redemption parameter indicates the redemption value per 100 face value at maturity. The frequency parameter specifies annual coupon payment frequency: 1 for annual, 2 for semi-annual, 4 for quarterly. The optional basis parameter determines the day-count convention (0-4), defaulting to 0 (30/360 US). Each parameter must be precisely specified; dates require proper formatting, rates should be in decimal form, and frequency values must match the security's actual payment schedule. Accuracy in these parameters directly impacts yield calculation precision.

settlement

Settlement date

maturity

Maturity date

last_interest

Last interest date

rate

Interest rate

pr

Security price

redemption

Redemption value

frequency

Payment frequency

basis

Day count basis

Optional

Practical Examples

Odd First Period Bond Calculation

=ODDLYIELD(DATE(2024,3,15), DATE(2028,12,31), DATE(2024,1,15), 0.045, 102.50, 100, 2, 0)

This formula calculates the yield for a bond with an odd first coupon period. The settlement date falls between the last interest date and the next regular coupon date, creating an irregular first period. The semi-annual frequency (2) and 30/360 basis (0) are standard for corporate bonds. The price above par (102.50) indicates the bond trades at a premium, which affects the yield calculation.

Government Bond with Odd Last Period

=ODDLYIELD(DATE(2024,6,20), DATE(2024,8,15), DATE(2024,5,15), 0.0325, 99.75, 100, 2, 1)

This calculation handles an odd last coupon period where maturity occurs shortly after settlement. The basis parameter is set to 1 (Actual/360), which is common for government securities. The short time to maturity combined with the irregular final period requires precise calculation. The price below par (99.75) indicates a discount, typical for securities approaching maturity.

Municipal Bond with Quarterly Payments

=ODDLYIELD(DATE(2024,9,10), DATE(2027,6,30), DATE(2024,8,1), 0.0375, 101.25, 100, 4, 0)

Municipal bonds often feature quarterly payments and irregular periods. The frequency parameter is set to 4 for quarterly payments. The odd first period results from settlement between the last coupon date (August 1) and the next regular quarterly payment date. The premium pricing (101.25) reflects favorable coupon rates relative to current market conditions.

Key Takeaways

ODDLYIELD calculates yield for securities with irregular first or last coupon periods, essential for accurate bond valuation in real-world portfolios
Proper parameter formatting is critical: dates in chronological order, rate as decimal, frequency as 1/2/4, basis as 0-4
The basis parameter significantly impacts results; verify it matches the security's documented day-count convention
ODDLYIELD is more versatile than ODDFYIELD but requires careful date management and parameter validation to avoid #NUM! or #VALUE! errors
Cross-validation against broker quotes and proper documentation of assumptions ensures model reliability and compliance with financial standards

Pro Tips

Always verify date chronology: last_interest < settlement < maturity. Excel's date serial numbers make it easy to accidentally reverse dates, causing #NUM! errors.

Impact : Prevents calculation failures and ensures accurate yield computations. Proper date sequencing is fundamental to ODDLYIELD accuracy.

Use DATE() functions instead of text strings for all date parameters. This ensures consistent date interpretation across different Excel locales and versions.

Impact : Eliminates locale-specific date formatting issues and makes formulas more portable and maintainable across different Excel environments.

Document the basis assumption for each bond in your model. Different securities use different conventions, and incorrect basis selection can significantly impact yield calculations.

Impact : Ensures compliance with accounting standards, improves audit trails, and prevents costly errors in financial reporting and investment decisions.

Cross-validate ODDLYIELD results against broker quotes and Bloomberg terminal data. Small discrepancies often reveal data entry errors or basis mismatches before they affect decisions.

Impact : Increases confidence in calculations, identifies systematic errors early, and ensures your models align with market reality.

Useful Combinations

Calculate Yield and Price Comparison

=ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, basis) - ODDLPRICE(settlement, maturity, last_interest, rate, yield_guess, redemption, frequency, basis)/100

Combine ODDLYIELD with ODDLPRICE to analyze the relationship between bond prices and yields. This combination helps identify arbitrage opportunities or validate pricing consistency. Calculate the yield using actual market price, then compute theoretical price using a target yield to identify deviations.

Conditional Yield Analysis with IF

=IF(settlement>=DATE(2024,1,1), ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, 0), ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, 1))

Use IF statements to apply different day-count bases based on settlement date or other conditions. This enables dynamic basis selection for portfolios containing securities governed by different conventions. Particularly useful for international bond portfolios with mixed basis requirements.

Portfolio Yield Aggregation

=SUMPRODUCT(position_weights, ODDLYIELD(settlement_array, maturity_array, last_interest_array, rate_array, price_array, redemption_array, frequency_array, basis_array)) / SUM(position_weights)

Combine ODDLYIELD with SUMPRODUCT to calculate weighted average yield across a portfolio of bonds with odd periods. This advanced combination enables comprehensive portfolio performance analysis and risk assessment. Requires array entry or modern Excel 365 dynamic arrays.

Common Errors

#NUM!

Cause: This error occurs when parameter values are logically invalid, such as settlement date after maturity date, negative price or redemption values, frequency not equal to 1, 2, or 4, or basis outside the 0-4 range. It may also appear when the last_interest date is after the settlement date.

Solution: Verify all date parameters are in chronological order (last_interest < settlement < maturity). Ensure price and redemption values are positive. Confirm frequency is 1, 2, or 4. Check that basis is between 0 and 4. Use DATE functions to ensure proper date formatting and comparison.

#VALUE!

Cause: This error typically results from incorrectly formatted dates, non-numeric values in rate, price, redemption, or frequency parameters, or text strings where numbers are expected. It can also occur if date parameters are entered as text rather than date serial numbers.

Solution: Wrap date parameters in DATE functions rather than using text strings. Ensure rate is expressed as a decimal (0.045 not 4.5%). Verify all numeric parameters contain only numbers without currency symbols or percentage signs. Use DATEVALUE() function if dates are text strings that need conversion.

#REF!

Cause: This error appears when formula references deleted cells or ranges, or when cell references in the formula point to invalid locations. It may occur if the formula is copied and adjusted incorrectly, breaking the intended cell references.

Solution: Check all cell references in the formula are valid and point to existing cells. Use absolute references ($) for fixed parameters if copying the formula. Verify no referenced cells or sheets have been deleted. Reconstruct the formula with correct cell references if necessary.

Troubleshooting Checklist

1.Verify all dates are in correct chronological order: last_interest date < settlement date < maturity date
2.Confirm rate parameter is in decimal format (0.045 for 4.5%, not 4.5 or 4.5%)
3.Check that price and redemption values are positive numbers expressed per 100 face value
4.Ensure frequency parameter is exactly 1, 2, or 4 (annual, semi-annual, or quarterly)
5.Validate basis parameter is between 0 and 4, matching the security's day-count convention
6.Confirm all date parameters are actual date serial numbers, not text strings (use DATE() function)

Edge Cases

Settlement date equals last interest date

Behavior: Excel may return unexpected results or #NUM! error because there is no accrued interest period to calculate

Solution: Ensure settlement occurs after the last interest date. If settlement coincides with a coupon date, use that date as settlement to avoid ambiguity

This edge case typically indicates data entry error rather than valid bond scenario

Very short odd period (settlement close to next coupon date)

Behavior: ODDLYIELD may produce extreme yield values or high sensitivity to small price changes due to short accrual period

Solution: Verify price data accuracy and consider whether the security is near a coupon date. Small price changes amplify yield calculations for short periods

This behavior is mathematically correct but requires careful interpretation in analysis

Price significantly above or below redemption value

Behavior: Large discrepancies between price and redemption can produce unexpected yield values, especially with odd periods and high coupon rates

Solution: Verify price data is per 100 face value. Recalculate with confirmed market prices. Consider whether the security is a deep discount or premium bond

Extreme pricing scenarios are valid but require validation to ensure data accuracy

Limitations

•ODDLYIELD handles only single odd periods (first or last), not securities with multiple irregular coupon periods. Complex structured products may require custom cash flow modeling
•The function requires precise date inputs and is highly sensitive to day-count basis selection. Incorrect basis specification can produce significantly different yields without error warnings
•ODDLYIELD is not available in Google Sheets or most cloud-based spreadsheet applications, limiting collaboration and cloud-based financial modeling workflows
•The function assumes coupon payments are made on schedule after the odd period ends. It cannot model securities with suspended payments, embedded options, or variable coupon adjustments

Compatibility

✓ Excel

Since 2007

=ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, [basis])

✗Google Sheets

Not available

✓LibreOffice

=ODDLYIELD(settlement, maturity, last_interest, rate, pr, redemption, frequency, [basis])

Frequently Asked Questions

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ODDLPRICE

PRICE