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: