The Excel PRICEMAT Function


Basic Description

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 :

PRICEMAT( settlement, maturity, issue, rate, yld, [basis] )

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:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
4European 30/360
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:

issue   <   settlement   <   maturity

Note also, that the settlement, maturity and issue arguments should be entered into the function as either:

or

Warning:


Excel Pricemat Function Example

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:

 AB
1Settlement Date:01-Apr-2011
2Maturity Date:31-Mar-2015
3Issue Date:01-Jan-2011
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.


Pricemat Function Errors

If you get an error from the Pricemat function, this is likely to be one of the following:

Common Errors
#NUM!-

Occurs if either:

  • the settlement date is ≥ issue date
  • the settlement date is ≥ maturity date
  • Invalid numbers are supplied for the rate, yld or basis arguments
    (i.e. if either: rate < 0; yld < 0; or basis is any number other than 0, 1, 2, 3 or 4)
#VALUE!-

Occurs if either:

  • any of the supplied arguments are non-numeric
  • the supplied settlement, maturity or issue arguments are not a valid Excel dates
#NAME?-

Occurs when Analysis ToolPak add-in is not enabled in your Excel.
You will need to enable the add-in if you want to use the Excel Pricemat function.

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