Formulas and Functions

Chapter 6 Financial Functions 137
“Listing of Financial Functions” on page 96
“Value Types” on page 36
“The Elements of Formulas” on page 15
“Using the Keyboard and Mouse to Create and Edit Formulas” on page 26
“Pasting from Examples in Help” on page 41
PRICE
The PRICE function returns the price of a security that pays periodic interest per $100
of redemption (par) value.
PRICE(settle, maturity, annual-rate, annual-yield, redemption, frequency, days-basis)
 settle: The trade settlement date. settle is a date/time value. The trade settlement
date is usually one or more days after the trade date.
 maturity: The date when the security matures. maturity is a date/time value. It must
be after settle.
 annual-rate: The annual coupon rate or stated annual interest rate of the security.
annual-rate is a number value and is either entered as a decimal (for example, 0.08)
or with a percent sign (for example, 8%).
 annual-yield: The annual yield of the security. annual-yield is a number value and is
either entered as a decimal (for example, 0.08) or with a percent sign (for example, 8%).
 redemption: The redemption value per $100 of par value. redemption is a number
value that must be greater than 0. redemption is the amount that will be received
per $100 of face value. Often, it is 100, meaning that the security’s redemption value
is equal to its face value.
 frequency: The number of coupon payments each year.
annual (1): One payment per year.
semiannual (2): Two payments per year.
quarterly (4): Four payments per year.
 days-basis: An optional argument specifying the number of days per month and
days per year used in the calculations.
30/360 (0 or omitted): 30 days in a month, 360 days in a year, using the NASD
method for dates falling on the 31st of a month.
actual/actual (1): Actual days in each month, actual days in each year.
actual/360 (2): Actual days in each month, 360 days in a year.
actual/365 (3): Actual days in each month, 365 days in a year.