Manuals/calci/PRICE
PRICE(SettlementDate, MaturityDate, Rate,Yield, Redemption, Frequency, Basis)
where,
SettlementDate - represents the settlement date.
MaturityDate - represents the maturity date.
Rate - the annual coupon rate.
Yield - the annual yield.
Redemption - represents the redemption value per $100 face value.
Frequency - the number of coupon payment per year.
Payments frequency
annual 1
semiannual 2
quarterly 4
Basis - type of day count basis
Basis Day count basis
0 or omitted US 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360
It returns the price per $100 face value that pays periodic interest.
Formula:-
PRICE =
If Basis < 0 or Basis > 4 , PRICE returns the #ERROR.
If Yield < 0 or Rate < 0, it returns the #ERROR.
If SettlementDate >= MaturityDate, PRICE returns #ERRROR.
If Frequency other than 1 , 2 or 4 returns the #ERROR.
If Redemption <= 0, PRICE returns the #ERROR.
PRICE
Lets see an example in (Column2, Row2)
=PRICE(R1C1, R2C1, R3C1, R4C1, R5C1,R6C1,R1C2)
PRICE returns 97.852841.
Consider another example
=PRICE(date(1/1/2007),date(2/2/2008), "5%", "4%",0,3)
It returns #ERROR(frequency =0).
| Column1 | Column2 | Column3 | Column4 | |
| Row1 | 2/2/2008 | 1 | ||
| Row2 | 11/2/2008 | 97.852841 | ||
| Row3 | 5% | |||
| Row4 | 8% | |||
| Row5 | 100 | |||
| Row6 | 2 |
