1. Calculation functions
2. All functions
3. Financial functions
4. PRICE

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])

## Arguments

 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:

• 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)

## Constraints

• 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

Most financial functions are unavailable in Polaris, but you can use FV, IPMT, NPER, PPMT, and PV. Learn more about the differences between Anaplan calculation engines.

PRICE

YIELD

## Examples

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: settlement date of 01/15/2015 maturity date of 01/15/2018 rate of 0.12 (12%) a yield of 0.10 (10%) redemption of 100 monetary units frequency of 1 (annual) basis of 4 (European 30/360) 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: settlement date of 01/15/2015 maturity date of 01/15/2018 rate of 0.12 (12%) a yield of 0.10 (10%) redemption of 100 monetary units frequency of 1 (annual) 105.13

Disclaimer

We may update our documentation occasionally, but will only do so in a way that does not negatively affect the features and functionality of the Anaplan service.