# Documentation/Calc Functions/PRICE

TDF LibreOffice Document Liberation Project Community Blogs Weblate Nextcloud Redmine Ask LibreOffice Donate

## Function name:

PRICE

## Category:

Financial Analysis

## Summary:

Calculates the market value of fixed interest security with a par value of 100 currency units as a function of the forecast yield.

## Syntax:

PRICE(**Settlement**; **Maturity**; **Rate**; **Yield**; **Redemption**; **Frequency**[; **Basis**])

## Returns:

Returns a non-negative real number which is a quoted price for interest-paying security, per 100 currency units of face value.

## Arguments:

**Settlement** is a date or a reference to a cell containing that date which is the date of purchase of the security.

**Maturity** is a date or a reference to a cell containing that date which is the date on which the security matures (expires).

**Rate** is a positive real number or a reference to a cell containing that number which is the annual rate of interest (coupon interest rate).

**Yield** is a positive real number or a reference to a cell containing that number which is the annual yield of the security.

**Redemption** is a positive real number or a reference to a cell containing that number which is the redemption value per 100 currency units of par value.

**Frequency** is a positive integer or a reference to a cell containing that integer which is the number of interest payments per year (1, 2, or 4).

Frequency | Frequency |
---|---|

1 | Annual |

2 | Semiannual |

4 | Quarterly |

**Basis** is a positive integer from 0 to 4 or a reference to a cell containing that integer which is chosen from a list of options and indicates how the year is to be calculated. For more information, visit Wikipedia's Day count convention page.

Basis | Calculation |
---|---|

0 or missing | US method (NASD), 12 months of 30 days each |

1 | Exact number of days in months, exact number of days in year. |

2 | Exact number of days in month, year has 360 days. |

3 | Exact number of days in month, year has 365 days. |

4 | European method, 12 months of 30 days each. |

- If
**Yield**less than 0 then the function returns an error value. - If either
**Maturity**or**Settlement**is not valid dates then the function returns an value(#VALUE!) error. - If
**Settlement**date is after the**Maturity**date then the function returns an error value. - If
**Rate**is less than or equal to 0 then the function will return an error value. - If
**Redemption**is less than or equal to 0 then the function returns an error value. - If
**Frequency**, and**Basis**are non-integer values, then the function uses their floor value, i.e. they are truncated to an integer value. - After truncation if
**Frequency**is any number except 1,2 or 4, then the function returns an error value. - After truncation if
**Basis**is any number except 0,1,2,3,4 or missing (passed as empty argument or not passed at all),then the function will return an error value.

## Additional details:

- The formula for PRICE is:

where A is the number of days from the Settlement date to the next coupon date, B is the number of days of the coupon period that the Settlement is in, C is the number of coupons between the Settlement date and Redemption date, D is the number of days from the beginning of coupon period to the Settlement date.

## Examples:

Formula | Description | Returns |
---|---|---|

=PRICE("1999-02-15"; "2007-11-15"; 0.0575; 0.065; 100; 2; 0) | A security is purchased on 1999-02-15; the maturity date is 2007-11-15. The nominal rate of interest is 5.75%. The yield is 6.5%. The redemption value is 100 currency units. Interest is paid half-yearly (frequency is 2). With calculation on basis 3. The function calculates the price using these arguments. | 95.0691101558316 |

=PRICE("1999-02-15"; "2007-11-15"; 0.0575; 0.065; 100; 2) | A security is purchased on 1999-02-15; the maturity date is 2007-11-15. The nominal rate of interest is 5.75%. The yield is 6.5%. The redemption value is 100 currency units. Interest is paid half-yearly (frequency is 2). With calculation on basis 0 by default. The function calculates the price using these arguments. | 95.0428743993921 |

=PRICE("1999-02-15.05"; "2007-11-15"; 0.0575; 0.065; 100; 2; 0) | The function returns an error value if either Settlement or Maturity are not valid dates. |
#VALUE! |

=PRICE("2009-02-15"; "2007-11-15"; 0.0575; 0.065; 100; 2; 0) | The function returns an error when Settlement date is after the Maturity date. |
Err:502 |

## Related LibreOffice functions:

## ODF standard:

## Equivalent Excel functions:

PRICE