I have recently been discussing the question of yield and forecast income from Malachite Aggressive Preferred Fund with a client, and as part of that referred him to the Yield Calculator for Resets so he could see for himself why the projected income from the fund was so much higher than the current income.

As part of that, I had to explain that HIMIPrefâ„˘, my analytical software, uses semi-annual compounded yield, which is a higher number than the quarterly compounded yield calculated by the spreadsheet. And my income projections use HIMIPrefâ„˘ calculations. The more I looked at my explanation, the more it looked like bafflegab and handwaving.

So, in order to reduce the complexity of this explanation in the future, I have added a display field on the spreadsheet showing the yield as the semi-annual compounded value (for comparability with bonds) as well as the quarterly compounded value (applicable only to instruments that pay quarterly).

[…] this post was written; the input of the data has been simplified. … JH 2015-8-7] [and a very minor modification added 2023-9-27 … JH […]

[…] 2023: A new update has added the calculated yield compounded semi-annually, for comparability to […]

[…] the above data into the yield calculator for resets (which is discussed here and has recently been slightly modified), we arrive at a annualized (compounded semi-annually) yield of 9.24% for RY.PR.J . To take this up […]

[…] the above data into the yield calculator for resets (which is discussed here and has recently been slightly modified), we arrive at a annualized (compounded semi-annually) yield of 7.35% for RY.PR.J . To take this […]