PRICE Function Explained
The PRICE function in Microsoft Excel calculates the price per $100 face value of a security that pays periodic interest. It takes five arguments: settlement, maturity, rate, yld, and redemption. The settlement argument is the security’s settlement date, the maturity argument is the security’s maturity date, the rate argument is the security’s annual coupon rate, the yld argument is the security’s annual yield, and the redemption argument is the security’s redemption value per $100 face value.
PRICE Function Syntax
PRICE(settlement, maturity, rate, yld, redemption, frequency, [basis])
- settlement: The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- maturity: The security’s maturity date. The maturity date is the date when the security expires.
- rate: The security’s annual coupon rate.
- yld: The security’s annual yield.
- redemption: The security’s redemption value per $100 face value.
- frequency: The number of coupon payments per year.
- basis: The type of day count basis to use.