You can use PRICE to calculate how much you pay against the bond's final value, and therefore the return on your investment.
PRICE(Settlement, Maturity, Rate, Yield, Redemption, Frequency[, Basis])
|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.|
The number of coupon payments per year.
The basis determines how many days exist in a year.
A full year has:
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:
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:
For a bond that pays one coupon between settlement and maturity, the price is calculated with this formula:
Where bonds have a zero rate and do not pay a coupon, the price is calculated with this formula:
In these formulas:
- E is the number of coupon days in the coupon period containing the settlement
- A is the number of coupon days before settlement
- DSC is the number of coupon days between the settlement and the next coupon
- DSR is the number of coupon days between the settlement and the maturity
- yld is the yield
- N is the total number of coupon periods between settlement and maturity
- n is the number of years to maturity as a fraction (calculated using a basis)
- 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).
Calculation engine functionality differences
Related Anaplan functions
This example shows a PRICE calculation that specifies a basis.
The example has a:
This example shows a PRICE calculation that does not specify a basis. As a result, the basis defaults to US 30/360.
The example has a: