PRICEMAT function

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

Syntax

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

 Important   Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text.

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.

Rate     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.

Basis Day count basis
0 (zero) or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360


Remarks

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900. Microsoft Excel for the Macintosh uses a different date system as its default.
  • 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, 2008, and is purchased by a buyer six months later. The issue date would be January 1, 2008, the settlement date would be July 1, 2008, and the maturity date would be January 1, 2038, which is 30 years after the January 1, 2008, issue date.
  • Settlement, maturity, issue, and basis are truncated to integers.
  • If settlement, maturity, or issue is not a valid date, PRICEMAT returns the #VALUE! 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 ≥ maturity, PRICEMAT returns the #NUM! error value.
  • PRICEMAT is calculated as follows:

Equation

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

The example may be easier to understand if you copy it to a blank worksheet.

ShowHow to copy an example

  • Create a blank workbook or worksheet.
  • Select the example in the Help topic.

 Note   Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help
  • Press CTRL+C.
  • In the worksheet, select cell A1, and press CTRL+V.
  • To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
 
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A B
Data Description
February 15, 2008 Settlement date
April 13, 2008 Maturity date
November 11, 2007 Issue date
6.1% Percent semiannual coupon
6.1% Percent yield
0 30/360 basis (see above)
Formula Description (Result)
=PRICEMAT(A2,A3,A4,A5,A6,A7) The price, for the bond with the terms above (99.98449888)
 
 
Applies to:
Excel 2007