PRICE Function
The PRICE function in Google Sheets calculates the price per $100 face value of a security that pays periodic interest, based on expected yield.
Syntax
PRICE(settlement, maturity, rate, yield, redemption, frequency, [day_count_convention])
settlement
: The security’s settlement date.maturity
: The security’s maturity date.rate
: The security’s annual coupon rate.yield
: The security’s annual yield.redemption
: The security’s redemption value per $100 face value.frequency
: The number of coupon payments per year (1, 2, or 4).day_count_convention
: (Optional) The day count basis to use. Defaults to 0 (US (NASD) 30/360).
Examples
- Basic Bond Price Calculation
Calculate the price of a bond with semi-annual payments:
=PRICE(DATE(2023, 1, 1), DATE(2033, 1, 1), 0.05, 0.04, 100, 2)
This will output 107.54.
Notes
- The result is expressed as a percentage of face value.
- Different day count conventions affect the price.