This article describes the formula syntax and usage of the PRICEMAT function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.
Returns the price per $100 face value of a security that pays interest at maturity.
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.
The PRICEMAT function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):
- Settlement Required. 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 Required. The security's maturity date. The maturity date is the date when the security expires.
- Issue Required. The security's issue date, expressed as a serial date number.
- Rate Required. The security's interest rate at date of issue.
- Yld Required. The security's annual yield.
- Basis Optional. The type of day count basis to use.
||Day count basis
|0 (zero) or omitted
||US (NASD) 30/360
- 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.
- 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:
- 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.
The example may be easier to understand if you copy it to a blank worksheet.
How do I copy an example?
- Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.
Selecting an example from Help
- Press CTRL+C.
- Create a blank workbook or worksheet.
- In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
- 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.
After you copy the example to a blank worksheet, you can adapt it to suit your needs.
|February 15, 2008
|April 13, 2008
|November 11, 2007
||Percent semiannual coupon
||30/360 basis (see above)
||The price, for the bond with the terms above (99.98449888)
Note In Excel Web App, to view the result in its proper format, select the cell, and then on the Home tab, in the Number group, click the arrow next to Number Format, and click General.