Description
Price returns the price of a security that pays interest periodically per $100 of face value.
Overloads
Price (settlementDate, maturityDate, couponRate, yield, redemptionValue, frequency)
Price (settlementDate, maturityDate, couponRate, yield, redemptionValue, frequency, 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.
couponRate is a non-negative number specifying the interest rate for the security.
yield is a non-negative number specifying the security's yield.
redemptionValue is a number or currency specifying the security's value at redemption per $100 of face value.
frequency is a number specifying the number of coupons per year. The supported values are 1 (annual payments), 2 (semiannual payments), and 4 (quarterly).
basis is an optional number specifying the day basis system to use. The following types are supported:
0 - American 30/360 (default)
Action
Price returns the price of a security that pays interest periodically per $100 of face value. There are three parts to the calculation. The first term calculates the present value of the redemption price, the second term handles the present value of the coupon payments and the last term subtracts the accrued interest payments.
Examples
Suppose a municipal bond is purchased on March 1, 1999 with a maturity date of January 1, 2005. The interest rate is 6.7% and the yield is 6.5%. At redemption, the face value of the bond is returned for a value of $100 and the interest is paid out quarterly.
Price(DateValue(1999,3,1), DateValue(2005,1,1), 0.067, 0.065, 100, 4, 0)
Returns $100.96 (rounded to the nearest cent) as the bond's price.
Comments
This function is similar to the Excel function of the same name.