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EXCEL PRICE FUNCTION
Excel PRICE Function Introduction
The Excel Price method calculates the value of an investment that pays monthly income per $100 face value.
Description of Excel PRICE Function
Syntax :
=PRICE( settlement, maturity, rate, yld, redemption, frequency, [basis] )
Parameters :
- Settlement – The ministry’s settlement date.
- Maturity – The ministry’s maturity date .
- Rate – The yearly coupons rate of the asset.
- Yld – The security’s yearly yield.
- Redemption – The redemption value of the securities per $100 face value.
- The amount of cash flows made every year. It has to be one of the ones that follow:
1 – Annually
2 – Semi-Annually
4 – Quarterly
- Basis – An optional integer input that sets the security’s financial day count basis. Possible values include:
| Basis | Day Count Basis |
|---|---|
| 0 (or omitted) | US (NASD) 30/360 |
| 1 | actual/actual |
| 2 | actual/360 |
| 3 | actual/365 |
| 4 | European 30/360 |
Step By Step Guide of PRICE Function
Example :
The Excel Price function is used to determine the price per $100 face value of a securities acquired on 01-Apr-2012, with a maturity date of 31-Mar-2020 and a rate of 12%. The return is ten percent, and the redemption value is one hundred dollars. Payments are made semi-annually on a 30/360 day count basis in the United States (NASD): The value 110.8344836 is returned by the aforementioned code. In other words, a security with the following parameters is worth $110.83.
Key Points
- #VALUE! – Occurs if either the provided settlement or maturity reasons are invalid Excel dates. Any of the given arguments is not a number.
- #NUM! – Occurs if the closing date, maturity date, or numbers are provided for the rate, yld, redemption, frequency, or [base] arguments. (That is, if any of the following conditions are met: rate 0; yld 0; redemption 0; frequency is any number other than 1, 2, or 4; or [base] is any number other than 0, 1, 2, 3, or 4).
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