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Excel PRICEMAT Function

Excel PRICEMAT function
Summary 
The Excel PRICEMAT function returns the price per $100 face value of a security that pays interest at maturity.
Purpose 
Get price per $100 interest at maturity
Return value 
Bond price
Syntax 
=PRICEMAT (sd, md, id, rate, yld, [basis])
Arguments 
  • sd - Settlement date of the security.
  • md - Maturity date of the security.
  • id - Issue date of the security.
  • rate - Security interest rate at date of issue.
  • yld - Annual yield of the security.
  • basis - [optional] Day count basis (see below, default =0).
Usage notes 

The Excel PRICEMAT function returns the price per $100 face value of a security that pays interest at maturity.  In the example shown, the formula in F5 is:

=PRICEMAT(C5,C6,C7,C8,C9,C10)

with these inputs, PRICEMAT returns a price for the bond of $93.09.

Entering dates

In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly inside a function, you can use the DATE function.

Basis

The basis argument controls how days are counted. The PRICEMAT function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis. This article on wikipedia provides a detailed explanation of available conventions.

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

Notes

  • In Excel, dates are serial numbers
  • Settlement, maturity, issue, and basis are truncated to integers.
  • If any date is not valid, PRICEMAT returns #VALUE!
  • Rate and yield must be positive or PRICEMAT returns the #NUM!
  • If basis is out-of-range, PRICEMAT returns #NUM!
  • If maturity date is not later than settlement date, PRICEMAT returns #NUM!

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