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Subject: [OASIS Issue Tracker] Commented: (OFFICE-2226) ODDFYIELD: is yieldirrespective?

• From: OASIS Issues Tracker <workgroup_mailer@lists.oasis-open.org>
• To: office@lists.oasis-open.org
• Date: Sun, 2 May 2010 21:36:25 -0400 (EDT)

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[ http://tools.oasis-open.org/issues/browse/OFFICE-2226?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=19020#action_19020 ]

Robert Weir  commented on OFFICE-2226:
--------------------------------------

This is an odd one (no pun intended).  It seems that this should be scale-invariant, since it returning a yield, a dimensionless quantity.  So if we evaluate the function for price X and redemption value Y, then the result of the calculation of 2X and 2Y would be identical, and X/2 and Y/2 would be the same. etc.

However, testing with Excel 2003 shows this not to be the case.

For example, given these inputs:

Settlement	Maturity	Issue date	first coupon	percent	price	redept	freq	basis
11/11/2008	3/1/2021	10/15/2008	3/1/2009	5.75%	 84.50 	100	2	0

I get 7.72% as the results.

Double the price and redemption:

Settlement	Maturity	Issue date	first coupon	percent	price	redept	freq	basis
11/11/2008	3/1/2021	10/15/2008	3/1/2009	5.75%	 169.00 	200	2	0

And the results are 4.53%

I don't know if this is particular to Excel's calculation or whether it is intrinsic to the financial meaning of the function.

Also, for the definition we'll want to define it in terms of ODDFPRICE.  There is no closed form for ODDFYIELD.  It is solved iteratively using ODDFPRICE.

The formula that Excel uses for ODDFPRICE is here:  http://office.microsoft.com/en-us/excel/HP052092041033.aspx

> ODDFYIELD: is yield irrespective?
> ---------------------------------
>
>                 Key: OFFICE-2226
>                 URL: http://tools.oasis-open.org/issues/browse/OFFICE-2226
>             Project: OASIS Open Document Format for Office Applications (OpenDocument) TC
>          Components: OpenFormula
>            Reporter: Eike Rathke
>            Assignee: Robert Weir
>            Priority: Minor
>             Fix For: ODF 1.2 Part 2 CD 3
>
>
> Broken out from OFFICE-916
> ODDFYIELD
> - doesn't need to say "yield per 100 units" - yield is irrespective of this.
> [ed:] TODO: is it? what about the Redemption parameter then, that says "the redemption value per 100 currency units face value".

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