Common questions about the YIELDMAT formula include:
- What is the YIELDMAT formula?
- How is the YIELDMAT formula used?
- What inputs are needed for the YIELDMAT formula?
The YIELDMAT formula can be used appropriately to calculate the yield on a bond by entering in its benchmark maturity rate, the bond's face value and the redemption rate for the bond.
The YIELDMAT formula can be commonly mistyped as YEILDMAT instead of YIELDMAT. Also YIELDMT, YIELDAMT, YELDMAT.
Common ways the YIELDMAT formula is used inappropriately include entering in incorrect inputs for the formula such as one of the bond's rate inputs being in a different unit of measure or entering an invalid redemption rate.
Common pitfalls when using the YIELDMAT formula include entering in incorrect parameters, failing to adjust for credit factors associated with the bond, and overlooking market or interest rate changes when entering in the rate inputs.
Common mistakes when using the YIELDMAT Formula include incorrectly entering in the benchmark maturity rate or incorrectly entering in the redemption rate.
Common misconceptions people might have with the YIELDMAT Formula include believing that it can be used to forecast future yield changes or that it is used to calculate yields for equities rather than bonds.