price - Purchase Price per $100 for a Bond on an Interest...

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Purchase Price per $100 for a Bond on an Interest Date – PRICE The purchase price per $100 for a bond on an interest date can be calculated using Excel’s PRICE function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. This function is included in the Analysis ToolPak. Syntax =PRICE(settlement,maturity,rate,yield,redemption,frequency,basis) Settlement – settlement date of the security Maturity – maturity date of the security Rate – interest rate at the issue date Yield – annual yield of the security Redemption – value of the security at redemption Frequency – number of coupon payments made per year 1 = annual 2 = semiannual 4 = quarterly Basis – day count basis of the security. Defaults to 0 if omitted. 0 = 30/360 (US NASD) 1 = actual/actual 2 = actual/360 3 = actual/365 4 = European 30/365 General Example The following general example shows how the PRICE function can be used. Notice that the PRICE function appears in the formula bar. 1
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Using the PRICE Function in a Spreadsheet To calculate the purchase price per $100 for a bond on an interest date, create a spreadsheet by following Steps 1 to 8. Or, to use the PRICE function right away, open the PRICE worksheet in the Excel Functions Templates workbook. All fields have been formatted for you (currency, percentage, number of decimals displayed). Step 1 : Enter PRICE Function in cell A1. You will replace PRICE Function with your project name when you use your spreadsheet for a particular question or situation. Step 2 : In cell A3 enter Settlement Date . In cell A4 enter Maturity Date . In cell A5 enter
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price - Purchase Price per $100 for a Bond on an Interest...

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