PRICEMAT(settlement, maturity, issue, rate, yield, basis)

The PRICEMAT function calculates the price per $100 face value of a security that pays interest at maturity. The function arguments are:

settlement

is the settlement date of the security, expressed as a date code

maturity

is the maturity date of the security, expressed as a date code

issue

is the issue date of the security, expressed as a date code

rate

is the interest rate of the security at date of issue

yield

is the annual yield of the security

basis

is the type of day count basis used, where basis is one of the following:

Basis

Day count basis

0

US 30/360

1

Actual/actual

2

Actual/360

3

Actual/365

4 or omitted

European 30/360

The formula used is

[100 + (DIM/B * rate * 100)] / [1 + (DSM/B * yield)] - (A/B * rate * 100)

where

B

is the number of days in a year according to year basis used

DSM

is the number of days from settlement to maturity

DIM

is the number of days from issue to maturity

A

is the number of days from issue to settlement.

For example, if a bond has settlement date 15th July, 1997, maturity date 31st October, 1997, and issue date 1st October, 1996, with an interest rate of 4.9% at date of issue and an annual yield of 5.4%, and is calculated according to a 30/360 year basis, then the formula

PRICEMAT(35625, 35733, 35338, 0.049, 0.054, 0)

returns a price of $99.79.

See also:

Other financial functions