The Excel Pricemat function calculates the price, per $100 face value of a security that pays interest at maturity.
The syntax of the function is :
Where the arguments are as follows:
|settlement||-||The settlement date of the security (ie. the date that the coupon is purchased)|
|maturity||-||The maturity date of the security (ie. the date that the coupon expires)|
|issue||-||The issue date of the security|
|rate||-||The security's interest rate at the date of issue|
|yld||-||The security's annual yield|
|[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
Note that the date arguments must satisfy the following:
Note also, that the settlement, maturity and issue arguments should be entered into the function as either:
In the following example, the Excel Pricemat function is used to calculate the price per $100 face value of a security that pays interest at maturity. The security's issue date is 01-Jan-2011, the settlement date is 01-Apr-2011, and the maturity date is 31-Mar-2015. The rate of interest at issue is 4.5% and the annual yield is 2.5%. The US (NASD) 30/360 day count basis is used:
|4||=PRICEMAT( B1, B2, B3, 4.5%, 2.5% )|
The function calculates the price per $100 face value to be $107.17.
Note that, in the above example:
Further examples of the Excel Pricemat function can be found on the Microsoft Office website.
If you get an error from the Pricemat function, this is likely to be one of the following:
Occurs when Analysis ToolPak add-in is not enabled in your Excel.