Dax Function: YIELDMAT

Category: Financial Functions

The YIELDMAT function in Power BI calculates the annual yield of a security that pays interest at maturity, based on its settlement date, maturity date, issue price, and redemption value.

Purpose

• To evaluate the annualized return of interest-bearing securities where interest is paid only at the maturity date.

• Commonly used for securities such as bonds and certificates of deposit that pay a lump sum upon maturity.

Type of Calculations

• Computes the annualized yield based on issue price, redemption value, and the period from settlement to maturity.

• Accounts for day count conventions to ensure precise calculations.

Practical Use Cases

1. Bond Analysis: Assess the annual return on bonds paying interest at maturity.

2. Investment Comparison: Compare the profitability of various fixed-income securities.

3. Portfolio Management: Determine yield metrics for securities in a portfolio.

Mathematical Principle

The YIELDMAT function calculates yield using the formula:

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Where:

• Redemption: Redemption value at maturity.

• Issue: Issue price of the security.

• Basis Days: Number of days in a year (based on the basis parameter).

• Days to Maturity: Days from settlement to maturity.

Key Points

• The calculation considers the annualized rate of return based on the period from issue to maturity.

• The basis parameter allows flexibility to conform to different day count conventions.

What Does It Return?

• Decimal Value: The annualized yield of the security as a decimal (e.g., 0.045 for 4.5%).

When Should We Use It?

• Evaluate Maturity-Yield Securities: Ideal for analyzing securities that pay a lump sum at maturity.

• Compare Investment Options: Assess yield differences between securities with varying terms.

• Financial Reporting: Include accurate yield calculations in reports for stakeholders.

Examples

Basic Usage :

Calculate the yield for:

• Settlement date: 2023-01-01

• Maturity date: 2024-01-01

• Issue date: 2022-01-01

• Annual interest rate: 5%

• Day count basis: US 30/360

Result: 0.0502 (5.02%)

Column Usage

For a table of securities:

Result: Adds annualized yields for each security.

Advanced Usage

Inflation-Adjusted Yield:

Account for inflation in the calculation:

Result: Yields adjusted for inflation impact.

Tips and Tricks

• Ensure all dates (settlement, maturity, issue) are valid and sequential.

• Use the basis parameter that matches the security’s day count convention for accurate results.

• Incorrect date sequencing (e.g., settlement after maturity) will cause errors.

• Ensure the rate parameter is expressed as a decimal (e.g., 0.05 for 5%).

Performance Impact of YIELDMAT DAX Function:

• Efficient for use in financial models and portfolio analysis.

• Optimize by applying filters for large datasets before calculation.

Related Functions You Might Need

Want to Learn More?
For more information, check out the official Microsoft documentation for YIELDMAT You can also experiment with this function in your Power BI reports to explore its capabilities.

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