Documentation/Calc Functions/PRICE

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Function name:

PRICE

Category:

Financial Analysis

Summary:

Calculates the market value of a 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:

Arguments:

Settlement is the date of purchase of the security.

Maturity is the date on which the security matures (expires).

Rate is the annual nominal rate of interest (coupon interest rate)

Yield is the annual yield of the security.

Redemption is the redemption value per 100 currency units of par value.

Frequency is the number of interest payments per year (1, 2 or 4).

Basis (optional) is chosen from a list of options and indicates how the year is to be calculated.

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

Additional details:

Examples:

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, the price is as follows:

=PRICE("1999-02-15"; "2007-11-15"; 0.0575; 0.065; 100; 2; 0) returns 95.04287.

Related LibreOffice functions:

ODF standard:

Equivalent Excel functions: