ODDLPRICE
ODDLPRICE calculates the price per $100 face value of a security with an odd first period. This function is useful for securities with irregular initial payment schedules. It requires details like settlement date, maturity date, and interest rate.
Syntax 🔗
=ODDLPRICE(Settlement, Maturity, Issue, First_Coup, Rate, Yield, Redemption, Basis)
Settlement | The security's settlement date. |
Maturity | The security's maturity date. |
Issue | The security's issue date. |
First_Coup | The date of the security's first coupon payment. |
Rate | The security's annual coupon rate. |
Yield | The security's annual yield. |
Redemption | The security's redemption value per $100 face value. |
Basis | The day-count basis to use for calculation. |
About ODDLPRICE 🔗
When working with securities that have an irregular first period, like bonds with unconventional coupon payment schedules, use the ODDLPRICE function in Excel. This function helps you determine the price per $100 face value of a security, providing accurate financial evaluations and aiding in investment decisions when traditional pricing methods are inadequate due to odd payment structures.
Examples 🔗
To calculate the price per $100 face value of a bond on a given settlement date, use the ODDLPRICE function. Given: settlement date - 01/15/2022, maturity date - 01/15/2027, issue date - 08/15/2021, first coupon date - 01/15/2022, annual coupon rate - 5%, annual yield - 4%, redemption value per $100 face value - $105, and using the actual/actual day-count basis for calculation, the formula would be: =ODDLPRICE("01/15/2022", "01/15/2027", "08/15/2021", "01/15/2022", 0.05, 0.04, 105, 1)
Notes 🔗
Ensure the dates you enter are Excel-compatible date values for accurate results. Verify that coupon payments match the specified parameters to produce meaningful outcomes. Adjust the function's input values to reflect the specifics of the security you are evaluating for precise calculations.
Questions 🔗
The 'First_Coup' argument denotes the date of the first coupon payment for the security. It plays a crucial role in calculating the price per $100 face value, especially in cases where the initial payment period differs from the standard schedule.
How does the ODDLPRICE function handle securities with irregular payment structures?The ODDLPRICE function is specifically designed to accommodate securities with irregular first periods, ensuring accurate pricing calculations even in scenarios where traditional methods may falter due to odd coupon payment schedules.
Can the ODDLPRICE function adapt to different day-count bases for calculation?Yes, the 'Basis' argument in the ODDLPRICE function allows users to specify the day-count basis to be used in the pricing calculation. By adjusting this parameter, users can cater to various day-count conventions for precise valuation outcomes.