In the example shown, the formula in F5 is: with these inputs, the PRICE function returns 97.56, which indicates the value of the bond is 97.56% of the face value. To get the actual dollar value, the formula in F6 is:
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. If you want to enter valid dates directly inside a function, the DATE function is the best approach.
Basis
The basis argument controls how days are counted. The PRICE 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.
Notes
In Excel, dates are serial numbers. settlement, maturity, frequency, and basis are truncated to integers If settlement or maturity dates are not valid, PRICE returns #VALUE! If basis is out-of-range, PRICE returns #NUM! If maturity date is not later than settlement date, PRICE returns #NUM!
Dave Bruns
Hi - I’m Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.
