Description
PriceMat returns the price of a security that pays all the interest at maturity per $100 of face value.
Overloads
PriceMat (settlementDate, maturityDate, issueDate, interestRate, yield)
PriceMat (settlementDate, maturityDate, issueDate, interestRate, yield, basis)
Arguments
settlementDate is a
Date or
DateTime specifying when the security was purchased.
maturityDate is a
Date or
DateTime after the settlement date specifying when the security matures.
issueDate is a
Date or
DateTime specifying when the security was issued.
interestRate is a non-negative number specifying the interest rate for the security.
yield is a non-negative number specifying the security's yield.
basis is an optional number specifying the day basis system to use. The following types are supported:
0 - American 30/360 (default)
Action
PriceMat returns the price of a security that pays all the interest at maturity per $100 of face value. The formula subtracts the interest accrued by the seller, from the present value of the amount received at maturity, based on the yield and the duration of the security.
Examples
Suppose a $150,000 Certificate of Deposit pays interest of 4.3% at maturity and has a yield of 4.0%. If the certificate was issued on January 1, 2000, purchased on March 4, 2000 and has a maturity date of July 31, 2000, then the following formula, using the 30/360 basis, can be used to calculate the price.
150000/100 * PriceMat(DateValue(2000,3,4), DateValue(2000,7,31), DateValue(2000,1,1), 0.043, 0.04)
This example returns $150,162.66 (rounded to the nearest cent) as the certificate's price. The face value of the certificate has to be divided by 100, since the function returns the price per $100.
Comments
This function is similar to the Excel function of the same name.