Yield to maturity for fixedincome security
In R2017b, the specification of optional input arguments has changed. While the
previous ordered inputs syntax is still supported, it may no longer be supported in a
future release. Use the optional namevalue pair inputs: Period
,
Basis
, EndMonthRule
,
IssueDate
,FirstCouponDate
,
LastCouponDate
,
StartDate
,Face
,
CompoundingFrequency
, DiscountBasis
, and
LastCouponInterest
.
Yield = bndyield(Price,CouponRate,Settle,Maturity)
Yield = bndyield(___,Name,Value)
given Yield
= bndyield(Price
,CouponRate
,Settle
,Maturity
)NUMBONDS
bonds with SIA date parameters and clean prices
(excludes accrued interest), returns the bond equivalent yields to maturity.
adds optional namevalue arguments. Yield
= bndyield(___,Name,Value
)
For SIA conventions, the following formula defines bond price and yield:
$$PV=\frac{CF}{{(1+\frac{z}{f})}^{TF}},$$
where:
PV = 
Present value of a cash flow. 
CF = 
The cash flow amount. 
z = 
The riskadjusted annualized rate or yield corresponding to a given cash flow. The yield is quoted on a semiannual basis. 
f = 
The frequency of quotes for the yield. 
TF = 
Time factor for a given cash flow. Time is measured in
semiannual periods from the settlement date to the cash flow
date. In computing time factors, use SIA

For ICMA conventions, the frequency of annual coupon payments determines bond price and yield.
[1] Krgin, D. Handbook of Global Fixed Income Calculations. Wiley, 2002.
[2] Mayle, J. "Standard Securities Calculations Methods: Fixed Income Securities Formulas for Analytic Measures." SIA, Vol 2, Jan 1994.
[3] Stigum, M., Robinson, F. Money Market and Bond Calculation. McGrawHill, 1996.