1. Calculation functions
2. All Functions
3. Financial functions
4. PRICE Use this function to calculate the price per 100 monetary units invested, for a bond that pays periodic interest.

The price is calculated using the following formula for bonds that pay two or more coupons between settlement and maturity: For a bond that pays one coupon between settlement and maturity, the price is calculated using this formula:  Where bonds have a zero rate and do not pay a coupon, use 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, and
• n is the number of years to maturity as a fraction (calculated using a basis).

Syntax

PRICE(settlement, maturity, rate, yield, redemption, frequency[, basis])

The PRICE function has the following 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 rate. 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, or 4 for quarterly. basis (optional) Number The basis determines how many days exist in a year. A full year has: 360 days when basis US 30/360, Actual/360, and EUR 30/360 are used; 365 days when basis Actual/365 is used; and 365 or 366 days when Actual/Actual is used. US 30/360 is the default basis for DURATION. 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, or 4 for European 30/360. Learn about the conventions used to calculate the day count for basis.

 Returns Number

Constraints

The PRICE function has the following 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); and
• 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).

Examples

The following tables show some example formulas using the PRICE function.

You can reference line items or list properties in your formula.

 Formula Description Result PRICE(DATE(2015, 1, 15), DATE(2018, 1, 15), 0.12, 0.10, 100, 1, 4) This is an example of a PRICE calculation that specifies a basis. It uses the European 30/360 basis, indicated by the number 4. The example has: a settlement date of 01/15/2015, a maturity date of 01/15/2018, a rate of 12%, a yield of 10%, a redemption of 100 monetary units, and a frequency of 1 (annual). 104.97 PRICE(DATE(2015, 1, 15), DATE(2018, 1, 15), 0.12, 0.10, 100, 4) In this example, the price is calculated without specifying a basis. As a result, this defaults to US 30/360. Here: the settlement date is 01/15/2015, the maturity date is 01/15/2018, the rate is 12%, the yield is 10%, the redemption is 100 monetary units, and the frequency is 4 (quarterly). 105.13