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Yield to Maturity function

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Al Eaton

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Aug 12, 2003, 11:49:34 AM8/12/03
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I am trying to correctly calculate a Yield to Maturity for a muni bond using
Excel's YTM function.

S/D 8/15/03
M/D 9/1/2011
DTD 1/1/92
CPN 6.125%
PX 116.170
BASIS 0

The correct answer is 3.775%. Excel gives 2.196%. What is going on here?

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Al Eaton
ale...@bak.rr.com
Bakersfield, California


Paul Corrado

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Aug 12, 2003, 2:28:36 PM8/12/03
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Al,

While the name of XL's YieldMaturity function sounds like it should
calculate the YTM of a financial instrument, it appears that is not the
case. YIELDMATURITY seems to calculate the Yield on a bond that pays
interest at maturity.

They YIELD function does however return the answer you are looking for.

PC

"Al Eaton" <NOS...@bak.rr.com> wrote in message
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Harlan Grove

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Aug 12, 2003, 1:41:50 PM8/12/03
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"Al Eaton" wrote...

>I am trying to correctly calculate a Yield to Maturity for a muni bond using
>Excel's YTM function.
..

Excel doesn't have a 'YTM' function. Looks like you're using an HP calculator's
YTM function. Anyway, Excel's TIELDMAT function is *NOT* what you want to use.
You want to use Excel's YIELD function.

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