Functions and CALL Routines

YIELDP Function

Returns the yield-to-maturity for a periodic cash flow stream, such as a bond.

Category:

Financial

Syntax
Arguments
Details
Examples

Syntax

YIELDP(A,c,n,K,k₀,p)

Arguments

A

specifies the face value.

Range:

c

specifies the nominal annual coupon rate, expressed as a fraction.

Range:

n

specifies the number of coupons per year.

Range:

and is an integer

K

specifies the number of remaining coupons from settlement date to maturity.

Range:

and is an integer

k₀

specifies the time from settlement date to the next coupon as a fraction of the annual basis.

Range:

p

specifies the price with accrued interest.

Range:

Details

The YIELDP function is based on the relationship

[equation]

where

The YIELDP function solves for y.

Examples

In the following example, the YIELDP function returns the yield-to-maturity of a bond that has a face value of 1000, an annual coupon rate of 0.01, 4 coupons per year, and 14 remaining coupons. The time from settlement date to next coupon date is 0.165, and the price with accrued interest is 800.

data _null_;
   y=yieldp(1000,.01,4,14,.165,800);
   put y;
run;

The value returned is 0.0775031248.

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