PRICEMAT

Returns the price per $100 face value of a security that pays interest at maturity.

If this function is not available, run the Setup program to install the Analysis ToolPak. After you install the Analysis ToolPak, you must enable it by using the Add-Ins command on the Tools menu.

Syntax

PRICEMAT(settlement,maturity,issue,rate,yld,basis)

Settlement   is the security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.

Maturity   is the security's maturity date. The maturity date is the date when the security expires.

Issue   is the security's issue date, expressed as a serial date number.

is the security's interest rate at date of issue.

Yld   is the security's annual yield.

Basis   is the type of day count basis to use.

Remarks

• The settlement date is the date a buyer purchases a coupon, such as a bond. The maturity date is the date when a coupon expires. For example, suppose a 30-year bond is issued on January 1, 1996, and is purchased by a buyer six months later. The issue date would be January 1, 1996, the settlement date would be July 1, 1996, and the maturity date would be January 1, 2026, which is 30 years after the January 1, 1996, issue date.
• Settlement, maturity, issue, and basis are truncated to integers.
• If any argument is nonnumeric, PRICEMAT returns the #VALUE! error value.
• If settlement, maturity, or issue is not a valid date, PRICEMAT returns the #NUM! error value.
• If rate < 0 or if yld < 0, PRICEMAT returns the #NUM! error value.
• If basis < 0 or if basis > 4, PRICEMAT returns the #NUM! error value.
• If settlement ³ maturity, PRICEMAT returns the #NUM! error value.
• PRICEMAT is calculated as follows:

  

  Where:

  B = number of days in year, depending on year basis.

  DSM = number of days from settlement to maturity.

  DIM = number of days from issue to maturity.

  A = number of days from issue to settlement.

Example

A bond has the following terms:

February 15, 1993, settlement date
April 13, 1993, maturity date
November 11, 1992, issue date
6.1 percent semiannual coupon
6.1 percent yield
30/360 basis

The price (in the 1900 date system) is:

PRICEMAT("2/15/93","4/13/93","11/11/92",0.061,0.061,0) equals 99.98449888