Difference between revisions of "Manuals/calci/PRICE"

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(Created page with "<div id="6SpaceContent" class="zcontent" align="left"> '''PRICE'''(SettlementDate, MaturityDate, Rate,Yield, Redemption, Frequency, Basis) where, '''SettlementDate'''...")
 
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<div id="6SpaceContent" class="zcontent" align="left">
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=PRICE(settlement, maturity, rate, yield, redemption, frequency, basis)=
  
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'''PRICE'''(SettlementDate, MaturityDate, Rate,Yield, Redemption, Frequency, Basis)
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*where 'settlement' is the security's settlement date (a date when coupon or a bond is purchased),
 +
*'maturity' is the security's maturity date (a date when coupon or a bond expires),  
 +
*'rate' is the security's      rate,  
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*'yield' is the security's annual yield,
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*'redemption' is
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*'frequency' is the number of coupon payments per year, and
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*'basis' is the type of day count basis to use.
  
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where,
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PRICE() calculates the price per $100 face value of security that pays periodic interest.
  
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'''SettlementDate''' - represents the settlement date.
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== Description ==
  
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'''MaturityDate''' - represents the maturity date.
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PRICE(settlement, maturity, rate, yield, redemption, frequency, basis)
  
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'''Rate''' - the annual coupon rate.
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*The function returns the price per $100 face value of security that pays periodic interest.
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*Settlement and maturity dates should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
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*If settlement date ≥ maturity date, Calci displays #N/A error message.
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*'coupon' and 'yield' values must be greater than or equal to zero.
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*The values for 'frequency' should be 1,2 or 4.  
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For Annual payment, frequency = 1,
  
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'''Yield''' - the annual yield.
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For Semi-annual payment, frequency = 2,
  
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Redemption - represents the redemption value per $100 face value.
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For Quarterly payment, frequency = 4.
  
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'''Frequency''' - the number of coupon payment per year.
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*'basis' value is optional. If omitted, Calci assumes it to be 0.
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Below table shows the use of 'basis' values:
  
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'''Payments              frequency'''
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{| class="wikitable"
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|-
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! Basis !! Description
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|-
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| 0 || US (NASD) 30/360
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|-
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| 1 || Actual/actual
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|-
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| 2 || Actual/360
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|-
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| 3 || Actual/365
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|-
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| 4 || European 30/365
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|}
  
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annual                     1
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*If 'basis' value is other than 0 to 4, Calci displays #N/A error message.
  
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semiannual               2
 
  
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quarterly                  4
 
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'''Basis''' - type of day count basis
 
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'''Basis              Day count basis'''
 
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0 or omitted    US 30/360
 
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1                     Actual/actual
 
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2                     Actual/360
 
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3                     Actual/365
 
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4                     European 30/360
 
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</div>
 
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----
 
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<div id="1SpaceContent" class="zcontent" align="left">
 
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It returns the price per $100 face value that pays periodic interest.
 
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'''Formula''':-
 
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PRICE =
 
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</div>
 
 
----
 
----
 
<div id="7SpaceContent" class="zcontent" align="left">
 
<div id="7SpaceContent" class="zcontent" align="left">
  
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If Basis &lt; 0 or Basis &gt; 4 , PRICE returns the #ERROR.
 
  
 
If Yield &lt; 0 or Rate &lt; 0, it returns the #ERROR.
 
If Yield &lt; 0 or Rate &lt; 0, it returns the #ERROR.
  
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If SettlementDate &gt;= MaturityDate, PRICE returns #ERRROR.
 
  
 
If Frequency other than 1 , 2 or 4 returns the #ERROR.
 
If Frequency other than 1 , 2 or 4 returns the #ERROR.
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If Redemption &lt;= 0, PRICE returns the #ERROR.
 
If Redemption &lt;= 0, PRICE returns the #ERROR.
  
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</div>
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== Examples ==
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----
 
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<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
 
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PRICE
 
  
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</div></div>
 
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----
 
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<div id="8SpaceContent" class="zcontent" align="left">
 
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Lets see an example in (Column2, Row2)
 
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<nowiki>=PRICE(R1C1, R2C1, R3C1, R4C1, R5C1,R6C1,R1C2)</nowiki>
 
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PRICE returns 97.852841.
 
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Consider another example
 
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<nowiki>=PRICE(date(1/1/2007),date(2/2/2008), "5%", "4%",0,3)</nowiki>
 
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It returns #ERROR(frequency =0).
 
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</div>
 
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----
 
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<div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
 
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----
 
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<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
 
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----
 
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<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
 
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----
 
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<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
 
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----
 
 
<div id="2SpaceContent" class="zcontent" align="left">
 
<div id="2SpaceContent" class="zcontent" align="left">
  
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|}
 
|}
  
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<div align="left">[[Image:calci1.gif]]</div></div>
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== See Also ==
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----
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*[[Manuals/calci/PRICEDISC | PRICEDISC]]
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*[[Manuals/calci/PRICEMAT | PRICEMAT]]
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== References ==
 +
 
 +
*[http://en.wikipedia.org/wiki/Bond_duration#Macaulay_duration Macau

Revision as of 20:37, 7 December 2013

PRICE(settlement, maturity, rate, yield, redemption, frequency, basis)

  • where 'settlement' is the security's settlement date (a date when coupon or a bond is purchased),
  • 'maturity' is the security's maturity date (a date when coupon or a bond expires),
  • 'rate' is the security's rate,
  • 'yield' is the security's annual yield,
  • 'redemption' is
  • 'frequency' is the number of coupon payments per year, and
  • 'basis' is the type of day count basis to use.

PRICE() calculates the price per $100 face value of security that pays periodic interest.

Description

PRICE(settlement, maturity, rate, yield, redemption, frequency, basis)

  • The function returns the price per $100 face value of security that pays periodic interest.
  • Settlement and maturity dates should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
  • If settlement date ≥ maturity date, Calci displays #N/A error message.
  • 'coupon' and 'yield' values must be greater than or equal to zero.
  • The values for 'frequency' should be 1,2 or 4.

For Annual payment, frequency = 1,

For Semi-annual payment, frequency = 2,

For Quarterly payment, frequency = 4.

  • 'basis' value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of 'basis' values:

Basis Description
0 US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/365
  • If 'basis' value is other than 0 to 4, Calci displays #N/A error message.



If Yield < 0 or Rate < 0, it returns the #ERROR.


If Frequency other than 1 , 2 or 4 returns the #ERROR.

If Redemption <= 0, PRICE returns the #ERROR.

Examples

Column1 Column2 Column3 Column4
Row1 2/2/2008 1
Row2 11/2/2008 97.852841
Row3 5%
Row4 8%
Row5 100
Row6 2

See Also

References

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