The Excel Price function calculates the price, per $100 face value of a security that pays periodic interest.
The syntax of the function is:
Where the arguments are as follows:
|settlement||-||The settlement date of the security (i.e. the date that the coupon is purchased).|
|maturity||-||The maturity date of the security (i.e. the date that the coupon expires).|
|rate||-||The security's annual coupon rate.|
|yld||-||The annual yield of the security.|
|redemption||-||The security's redemption value per $100 face value.|
|[basis]||-||An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:|
|The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page|
Warning: If you enter text representations of dates into Excel functions, the interpretation of these can vary, depending to the date system and date interpretation settings on your computer. Therefore, the settlement and maturity dates should be entered into the Price function as either:
|3||=PRICE( B1, B2, 12%, 10%, 100, 2 )|
The above function returns the value 110.8344836.
I.e. a security with the above terms would be valued at $110.83
Note that, in the above example:
Further examples of the Excel Price function are provided on the Microsoft Office website.
If you get an error from the Price function, this is likely to be one of the following: