Investment Studio > Expressions > Functions > Financial > PRICEMAT

float pricemat(date settlement_date, date maturity_date, date issue_date, float interest_rate_at_issue, float annual_yield, integer day_count_basis = 0)

Returns the price of a security that pays interest at maturity (e.g. a zero-coupon bond). A face value of 100 is implied.

settlement_date is the date (>= issue_date) when the security is traded.

maturity_date is the date when the security expires.

issue_date is the date when the security was issued.

Automatic type conversion allows the use of date strings as arguments instead of explicit date values.

interest_rate_at_issue is the security's interest rate on the issue date.

annual_yield is the security's annual yield.

day_count_basis specifies the calendar convention used to count days and compute the corresponding fraction of a year:

day_count_basis Interpretation
0 US (NASD) 30/360: If the start date is the 31st of a month, it's set to the 30th of the same month. If the end date is the 31st of a month, it's set to the 30th of the same month unless the start date is less than the 30th of a month, in which case the end date is set to the 1st of the next month.

The denominator used to compute the fraction of a year is 360.

1 Actual calendar days are counted and used to compute the fraction of a year.
2 Actual calendar days are counted. The denominator used to compute the fraction of a year is 360.
3 Actual calendar days are counted. The denominator used to compute the fraction of a year is 365.
4 European 30/360: Start and end dates that occur on the 31st of a month are set to the 30th of the same month. The denominator used to compute the fraction of a year is 360.

If day_count_basis is omitted, it defaults to 0 (NASD-style 360/30).

Example

Consider a bond with the following properties:

Assuming standard US date format settings, the price is

=pricemat("6/15/2002", "10/30/2005", "11/1/1996", 6%, 7%)

» USD 90.82.

See also disc, price, pricedisc, yield.