PRICE - Anaplan Technical Documentation

The PRICE function calculates the price per 100 monetary units invested for a bond that pays periodic interest.

You can use PRICE to calculate how much you pay against the bond's final value, and therefore the return on your investment.

Syntax

PRICE(Settlement, Maturity, Rate, Yield, Redemption, Frequency[, Basis])

Argument	Data type	Description
Settlement (required)	Date	The bond settlement date: The date the bond is traded to the buyer.
Maturity (required)	Date	The bond maturity date: The date when the bond expires.
Rate (required)	Number	The bond annual coupon date.
Yield (required)	Number	The bond annual yield.
Redemption (required)	Number	The payment received when the bond reaches maturity.
Frequency (required)	Number	The number of coupon payments per year. Enter: 1 for annual 2 for semi-annual 4 for quarterly
Basis	Number	The basis determines how many days exist in a year. A full year has: 360 days when basis US (NASD) 30/360, Actual/360, and EUR 30/360 are used 365 days when basis Actual/365 is used 365 or 366 days when Actual/Actual is used US 30/360 is the default basis for COUPDAYS. It can also be specified by entering 0. To use a different type of day count basis, enter: 1 for Actual/Actual 2 for Actual/360 3 for Actual/365 4 for European 30/360 Learn about the conventions used to calculate the day count for basis.

The PRICE function returns a number.

For bonds that pay two or more coupons between settlement and maturity, the price is calculated with this formula:

Price = \left [ \frac {redemption} {\left ( 1+\frac{yld}{frequency} \right )^{N-1+\frac{DSC}{E}}} \right ] + \left [ \sum_{k=1}^{N} \frac {100 * \frac{rate}{frequency}} {\left ( 1+\frac{yld}{frequency} \right )^{k-1+\frac{DSC}{E}}} \right ] - 100 * \frac{rate}{frequency} * \frac{A}{E}

For a bond that pays one coupon between settlement and maturity, the price is calculated with this formula:

DSR = E – A

Price= \frac {100 * \frac{rate}{frequency} + redemption} {\frac{yld}{frequency} * \frac{DSR}{E}+1} 100 * \frac{rate}{frequency} * \frac{A}{E}

Where bonds have a zero rate and do not pay a coupon, the price is calculated with this formula:

Price = \frac{redemption}{(1 + yld)^{n}}

In these formulas:

The settlement and maturity dates must be valid dates between 01/01/1900 and 12/31/2399.
The maturity date must be later than the settlement date.
The rate must be greater than zero.
The yield must be greater than negative one.
The redemption must be greater than zero.
The frequency must be either 1 (annual), 2 (semi-annual), or 4 (quarterly).
The basis, when specified, must be either 0 (US 30/360), 1 (Actual/Actual), 2 (Actual/360), 3 (Actual/365), or 4 (EUR 30/360).

Most financial functions are currently unavailable in Polaris. Learn more about the differences between Anaplan calculation engines.

This example shows a PRICE calculation that specifies a basis.

Formula Description Result

PRICE(DATE(2015, 1, 15), DATE(2018, 1, 15), 0.12, 0.10, 100, 1, 4)

The example has a:

104.97

This example shows a PRICE calculation that does not specify a basis. As a result, the basis defaults to US 30/360.

Formula Description Result

PRICE(DATE(2015, 1, 15), DATE(2018, 1, 15), 0.12, 0.10, 100, 4)

The example has a:

105.13