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Google Sheets - can't get YIELD or YIELDMAT to give correct results

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    Google Sheets - can't get YIELD or YIELDMAT to give correct results

    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.
    Last edited by Freeagent; 11-29-2022 at 11:37 AM.

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    Re: Google Sheets - can't get YIELD or YIELDMAT to give correct results

    I have been able to get more meaningful results using YIELD and YIELDMAT but only after I realized that the instructions were based on a $100 par value. In YIELD, for $25 preferred shares, I had to divide the annual dividend rate by 4 if there were 4 payments (as there usually are). Or multiply the purchase price by 4 and use $100 for par at redemption. Then use full annual rate and 4 payments. This also got a believable result from YIELDMAT.

    These functions do not account for the actual dates dividends are declared. This can result in an incorrect number of payments being used and incorrect yields. As a result, not really a good way of calculating preferred yield to maturity/reset/call.

    Following are syntax requirements for anyone finding this post.

    Sample Usage
    YIELD(DATE(2010,01,02),DATE(2039,12,31),3,93.45,100,2)

    YIELD(A2,B2,C2,D2,E2,F2,1)

    Syntax
    YIELD(settlement, maturity, rate, price, redemption, frequency, [day_count_convention])

    settlement - The settlement date of the security, the date after issuance when the security is delivered to the buyer.

    maturity - The maturity or end date of the security, when it can be redeemed at face, or par value.

    rate - The annualized rate of interest.

    price - The price at which the security is bought per 100 face value.

    redemption - The redemption amount per 100 face value, or par.

    frequency - The number of interest or coupon payments per year (1, 2, or 4).

    day_count_convention - [ OPTIONAL - 0 by default ] - An indicator of what day count method to use.

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    Re: Google Sheets - can't get YIELD or YIELDMAT to give correct results

    No response or interest here?

    For what it's worth, what I finally did, may help others finding this thread.

    FireShot Capture 400 - sample ytc - Google Sheets_ - https___docs.google.com_spreadshee.jpg

    Example of use in a single cell (from a different spreadsheet) where purchase date is today and face value is $25.
    =((1+RATE(COUPNUM(TODAY(),L5,4,0),P5/4,-I5,C22))^4)-1
    Last edited by Freeagent; 12-03-2022 at 11:31 AM.

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    Re: Google Sheets - can't get YIELD or YIELDMAT to give correct results

    deleted but could not find how to delete entire post elsewhere although "Edit Post" says edit/delete???

    At bottom it says:

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    I am confused!
    Last edited by Freeagent; 12-10-2022 at 12:20 PM.

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