Manuals/calci/PRICE

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 annual coupon rate,
• 'yield' is the security's annual yield,
• 'redemption' is security's redemption value per $100 face value,
• '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.
• 'rate' and 'yield' values must be greater than or equal to zero, else Calci displays #N/A error message.
• 'redemption' value must be greater than zero, else Calci displays #N/A error message.
• 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.

Examples

2/2/2008
11/2/2016
5%
8%
$100
2
0

=PRICE(A1,A2,A3,A4,A5,A6,A7) : Calculates the Price Value with the inputs in the range A1 to A7. Returns 81.36538958112115.

See Also

• PRICEDISC
• PRICEMAT

References

• Bond Valuation