The YIELD function syntax has the following arguments: Settlement Required. The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer. Maturity Required. The security's maturity date. The maturity date is the date when the security expires. Rate Required. The security A tutorial for calculating and comparing bond yields: nominal and current yield, yield to maturity (aka true or effective yield), yield to call, yield to put, yield to sinker, yield to average life, yield to worst, and taxable or bond equivalent yield, and determining the interest rate for zero coupon bonds — includes formulas and examples. The effective interest rate is the true rate of interest earned. It can also mean the market interest rate, the yield to maturity, the discount rate, the internal rate of return, the annual percentage rate (APR), and the targeted or required interest rate. Example of the Effective Interest Rate. Assume that a corporation issues a $1,000 bond