Microsoft Office Tutorials and References
In Depth Information
PRICE
The interest rate of the loan.
RATE
The period for which you want a return on what the principal amount is. It
must be between 1 and Nper .
PER
The number of total payments.
NPER
The present value or the principal amount.
PV
The future value or cash balance you want to attain upon the last payment.
For a loan it would be zero.
FV
The payment timing—when the payments are due.
TYPE
Figure 6.28
Using the PPMT returns
the principal payment
for a period of an
investment based on
periodic constant
payments and a
constant interest rate.
A
Build this
function with
cell referencing
PRICE
PRICE returns the value of a security based on price per $100 face value and periodic interest
payments.
=PRICE(settlement,maturity,rate,yield,redemption,frequency,basis)
The PRICE function returns the value of the security based on the price per $100 face value of the
security with periodic interest payments. Figure 6.29 shows the settlement date is 11/11/1999.
The maturity date is 3/1/2011, and the annual coupon rate is 5.9%. The annual yield of the
security is 6.8% and the redemption is $100. With seminannual frequency, the basis is Actual/actual
resulting in the value of the security being $93. The PRICE function is found only if the Analysis
Toolpak is installed. It must be turned on using the Add-Ins command from the Tools menu.
The security’s settlement date. This is the date after the issue date when
the security is traded to the buyer.
SETTLEMENT
The security’s maturity date—the date when the security expires.
MATURITY
The annual coupon rate of the security.
RATE
The annual yield of the security.
YIELD
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