I have a large spreadsheet of preferred shares. I want to add a column for yield to call (maturity) . I have tried using YIELD and YIELDMAT but they give wrong results. I must be doing something wrong I have attached a sample spreadsheet, but because this is first post, that didn't work! This is what it looks like:
PREFERRED SHARE
CALCULATE YIELD TO MATURITY IF CALLED.
PURCHASE/SETTLEMENT DATE 11/04/2022 C2
MATURITY/CALL DATE 09/30/2024 C3
PRICE PAID $ 22.55 C4
DIVIDEND (ANNUAL) 1.49 C5
REDEMPTION $ AT MATURITY 25 C6
FREQUENCY OF DIV (QUARTERLY) 4 C7
RATE 5.97% C8
ISSUE DATE 10/01/2019 C9
DAY COUNT (CONVENTIONAL) 0 C10
Results:
YIELD 30.83% using YIELD(C2, C3, C8, C4, C6, C7, C10)
YIELDMAT 113.67% using YIELDMAT(C2, C3, C9, C8, C4, C10)
USING OTHER SOURCES, YIELD TO MATURITY SHOULD BE 11.4 TO 12.1 DEPENDING ON METHOD USED.
IN ROUGH TERMS,2*1.49=$2.98 IN DIVIDENDS PLUS 25-22.55=$2.45 IN CAPITAL GAINS
TOTAL OF 2.98+2.45=$5.43 IN 23 MONTHS FOR $22.55 INVESTMENT - APPROX 12.6% PA YIELD TO CALL.
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