PRICEMAT Function Explained
The PRICEMAT Function in Microsoft Excel calculates the price of a security that pays periodic interest payments. It takes the following arguments: settlement, maturity, rate, yld, redemption, frequency, and basis. 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 interest rate, the yld argument is the security’s annual yield, the redemption argument is the security’s redemption value per $100 face value, the frequency argument is the number of coupon payments per year, and the basis argument is the type of day count basis to use.
PRICEMAT Function Syntax
PRICEMAT(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: (optional) The type of day count basis to use. 0 or omitted = US (NASD) 30/360; 1 = Actual/actual; 2 = Actual/360; 3 = Actual/365; 4 = European 30/360.