The Excel PRICEMAT Function

Function 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 (i.e. the date that the coupon is purchased).
maturity-The maturity date of the security (i.e. 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.

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
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

Warning: If you supply text representations of dates to Excel functions, the interpretation of these can vary, depending to the date system and date interpretation settings on your computer. Therefore, the settlement, maturity and issue arguments should be entered into the Pricemat function as either:


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-2017, the settlement date is 01-Apr-2017, and the maturity date is 31-Mar-2021. 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:

1Settlement Date:01-Apr-2017
2Maturity Date:31-Mar-2021
3Issue Date:01-Jan-2017
4=PRICEMAT( B1, B2, B3, 4.5%, 2.5% )

The above Pricemat function returns the value 107.1704545.

I.e. the price of security with the above terms would be $107.17.

Note that, in the above example:

For further examples of the Excel Pricemat function, see 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

Occurs if either:

  • The issue date ≥ settlement date;
  • The settlement date ≥ 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).

Occurs if either:

  • The supplied settlement, maturity or issue arguments are not valid Excel dates
  • Any of the supplied arguments are non-numeric.