PRICEMAT
The PRICEMAT function calculates the price per $100 face value of a security that pays interest at maturity. It helps determine the price of a security that accrues interest until maturity. This function is useful in financial analysis.
Syntax 🔗
=PRICEMAT(Settlement, Maturity, Issue, RATE, Yield, Basis)
Settlement | Date on which the security is purchased. |
Maturity | Date when the security matures. |
Issue | Date of the security's issue. |
Rate | Annual coupon rate of the security. |
Yield | Annual yield of the security. |
Basis | The day-count basis to use for calculations. |
About PRICEMAT 🔗
Use the PRICEMAT function in Excel to calculate the price per $100 face value of securities that accumulate interest until maturity, rather than paying periodic interest. This function helps you evaluate the market value of such securities by considering the settlement date, maturity date, issue date, annual coupon rate, and annual yield. It is suitable for scenarios where interest is accrued until maturity. You can also adjust the calculations with different day-count basis options to match specific market practices and accounting standards.
Examples 🔗
Assume you've purchased a security with a maturity date of June 30, 2023, an issue date of January 1, 2023, a settlement date of July 1, 2022, an annual coupon rate of 4%, an annual yield of 5%, and utilizing the US (NASD) 30/360 day-count basis. To calculate the price per $100 face value of the security, use the PRICEMAT formula as follows: =PRICEMAT("7/1/2022", "6/30/2023", "1/1/2023", 0.04, 0.05, 0)
Consider a security with a maturity date of August 15, 2024, an issue date of January 15, 2024, a settlement date of June 1, 2024, an annual coupon rate of 3%, an annual yield of 4%, and applying the actual/actual day-count basis. Use the PRICEMAT formula to determine the price per $100 face value of the security: =PRICEMAT("6/1/2024", "8/15/2024", "1/15/2024", 0.03, 0.04, 1)
Notes 🔗
Make sure your dates are formatted correctly as valid Excel date values or reference cells that contain valid date values to prevent calculation errors. Adjust the argument values according to the specific attributes of the security you are assessing. Use PRICEMAT for securities that accrue interest until maturity without periodic interest payments.
Questions 🔗
The PRICEMAT function calculates the price of a security by considering the accrued interest from the issue date to the settlement date, factoring in the annual coupon rate, yield, and the specific day-count basis specified in the calculation.
Is the PRICEMAT function suitable for securities that pay periodic interest?No, the PRICEMAT function is primarily designed for securities that accumulate interest until maturity without periodic interest payments. For securities with regular interest distributions, other functions like PRICE or PRICEDISC should be used.
Can I input different day-count bases for the PRICEMAT function?Yes, the Basis argument in the PRICEMAT function allows for the selection of different day-count bases to align with specific accounting conventions or market practices. Choose the appropriate numeric code corresponding to the desired day-count basis.
When utilizing the PRICEMAT function, consider accuracy in inputting relevant dates, annual coupon rates, yields, and ensuring alignment with the chosen day-count basis to obtain precise pricing estimates for securities following the interest-at-maturity structure.