Description
The Excel Price function calculates the price, per $100 face value of a security that pays periodic interest.
The syntax of the function is :
PRICE( settlement, maturity, rate, yld, redemption, frequency, [basis] )
Where the arguments are as follows:
Excel Price Function Example
In the following example, the Excel Price function is used to calculate the price per $100 face value of a coupon purchased on 01-Apr-2012, with maturity date 31-Mar-2020 and a rate of 12%. The yield is 10% and the redemption value is $100. Payments are made semi-annually and the US (NASD) 30/360 day count basis is used:
The function calculates the Price per $100 face value to be $110.83.
- i.e. a bond with the above terms would be valued at $110.83
Note that, in the above example:
Price Function Errors
If you get an error from the Price function, this is likely to be one of the following:
Common Errors
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