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

The PRICE function calculates the price per $100 face value of a security that pays periodic interest. 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

rate

is the annual coupon rate of the security

yield

is the annual yield of the security

redemption

is the redemption value of the security per $100 face value

frequency

is the number of coupon payments per year (1 = annually; 2 = biannually; 4 = quarterly)

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

For example, if a bond has settlement date 15/July/1992, maturity date 15/September/1999, annual coupon rate of 6.50%, annual yield of 7.25%, redemption value of $100, two coupon payments per year, and is calculated according to a year basis of US 30/360, then use the formula

PRICE(33799, 36417, 6.50%, 7.25%, 100, 2, 0).

This returns a bond price of $95.852.

See also:

Other financial functions