PRICE
Formulas / PRICECalculate the price per $100 face value of a security that pays periodic interest.
=PRICE(settlement, maturity, rate, yld, redemption, frequency, [basis])
- Settlement - the date the coupon is purchased
- Maturity - the date the bond expires
- Rate - required
- Yld - the annual yield of the bond security
- Redemption - the value of the bond per $100 face value
- Frequency - the number of coupon payments per year
- Basis - [OPTIONAL] the financial day count basis
Examples
=PRICE(C9,C10,C7,C8,C6,C12,C13)The PRICE function can be used to calculate the value of a bond as a percentage of the face value. For example, this returns 97.56, which indicates that the bond's value is 97.56% of the face value.
=F5/100*C5To calculate the actual dollar value of a bond, the preceding formula can be used. This will return the bond's actual dollar value.
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Summary
The PRICE function is a useful tool for calculating the price per $100 of a security that pays periodic interest.
- The PRICE function calculates the price per $100 of a security and can be used to determine the "market price" of a bond, as well as its value when purchasing.
- The PRICE function allows five optional arguments, which can be used to calculate periodic interest.
Frequently Asked Questions
What is the PRICE function?
The PRICE function is used to calculate the price per $100 of a security.
What are the arguments for the PRICE function?
The arguments for the PRICE function are settlement, maturity, rate, yld, and redemption.
What types of dates can I use with the PRICE function?
You can use dates entered as text with the PRICE function.
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