Yield Real
Function Yield Real within Inflation Bondreturns the real yield(s) of the referenced inflation bond(s) as of a given reference date T.
Here the real yield is defined as the single rate yʳ that when used to discount all future bond Real Cash Flow down to time T, the resulting present value equals a given real dirty bond price at the same time T
There exist 2 distinct methods for obtaining the real yield:
1) From a given clean price as of time T, which can be either in real or nominal terms and used to imply the needed respective real dirty price.
2) From a given discounting yield curve that is used to calculate the needed real dirty price at time T.
If the settlement date Tˢ is not explicitly given, it will be set to the bond's settlement date as implied by a trade transaction assumed to occur on the trade dateT₀ (typically today).