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 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 zero, else Calci displays #N/A error message.
- 'redemption' value must be greater than or equal to 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
| Column1 | Column2 | Column3 | Column4 | |
| Row1 | 2/2/2008 | 1 | ||
| Row2 | 11/2/2008 | 97.852841 | ||
| Row3 | 5% | |||
| Row4 | 8% | |||
| Row5 | 100 | |||
| Row6 | 2 |
