The Excel ODDFPRICE Function

Related Functions:

Function Description

The Excel Oddfprice function calculates the price per $100 face value of a security with an odd (short or long) first period.

The syntax of the function is:

ODDFPRICE( settlement, maturity, issue, first_coupon, rate, yld, redemption, frequency, [basis] )

Where the arguments are as follows:

settlement

The settlement date of the security (i.e. the date that the coupon is purchased).

maturity

The maturity date of the security (i.e. the date that the coupon expires).

issue

The issue date of the security.

first_coupon

The date of the security's first coupon.

rate

The security's interest rate.

yld

The security's annual yield.

redemption

The security's redemption value per $100 face value.

frequency

The number of coupon payments per year. This must be one of the following:

1	-	Annually
2	-	Semi-Annually
4	-	Quarterly

[basis]

An optional integer argument which specifies the financial day count basis that is used by the security. Possible values are:

Basis	Day Count Basis
0 (or omitted)	US (NASD) 30/360
1	actual/actual
2	actual/360
3	actual/365
4	European 30/360

The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page

Note that the date arguments must satisfy the following:

issue < settlement < first_coupon < maturity

Note also, that the settlement, maturity, issue and first_coupon arguments should be entered into the Oddfprice function as either:

References to cells containing dates

Dates returned from formulas.

Warning: If you input text representations of dates into Excel functions, the interpretion of these can differ, depending to the date system and date interpretation settings on your computer.

Excel Oddfprice Function Example

In the following spreadsheet, the Excel Oddfprice function is used to calculate the price per $100 face value of a security with issue date 01-Dec-2016, settlement date 01-Feb-2017, first coupon date 31-Mar-2017 and the maturity date 31-Mar-2021. The rate of interest is 5.5%, the annual yield is 3.5% and the redemption value is $100. Payments are made quarterly and the US (NASD) 30/360 day count basis is used:

	A	B
1	Settlement Date:	01-Feb-2017
2	Maturity Date:	31-Mar-2021
3	Issue Date:	01-Dec-2016
4	First Coupon Date:	31-Mar-2017
5	=ODDFPRICE( B1, B2, B3, B4, 5.5%, 3.5%, 100, 4 )

The above function returns the value 106.771695.

I.e. a security with the above terms would be valued at $106.77.

Note that, in the above example:

As recommended, the date arguments have been supplied to the Oddfprice function as references to cells containing dates;
The rate and yld arguments are input as percentages 5.5% and 3.5%. However, these arguments could, instead, be entered as the simple numeric values 0.055 and 0.035;
As [basis] argument has been omitted, the function uses the default value 0 (denoting the US (NADS) 30/360 day count basis).

For further examples of the Excel Oddfprice function, see the Microsoft Office website.

Oddfprice Function Errors

If you get an error from the Excel Oddfprice function, this is likely to be one of the following:

Common Errors

#NUM!

Occurs if either:

The supplied issue date ≥ settlement date;
The supplied settlement date ≥ first_coupon date;
The supplied first_coupon date ≥ maturity date;
Invalid numbers are supplied for the rate, yld, redemption, frequency or [basis] arguments.
(I.e. if either: rate < 0; yld < 0; redemption ≤ 0; frequency is any number other than 1, 2 or 4; or [basis] is any number other than 0, 1, 2, 3 or 4).

#VALUE!

Occurs if either:

The supplied settlement, maturity, issue or first_coupon arguments are not a valid Excel dates;
Any of the supplied arguments are non-numeric.

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