The Excel PRICEMAT Function

Related Functions:

PRICE function
YIELDMAT function

Function Description

The Excel Pricemat function calculates the price, per $100 face value of a security that pays interest at maturity.

The syntax of the function is:

PRICEMAT( settlement, maturity, issue, rate, yld, [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.

rate

The security's interest rate at the date of issue.

yld

The security's annual yield.

[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 < maturity

Warning: If you supply text representations of dates to Excel functions, the interpretation of these can vary, depending to the date system and date interpretation settings on your computer. Therefore, the settlement, maturity and issue arguments should be entered into the Pricemat function as either:

References to cells containing dates

Dates returned from formulas.

Excel Pricemat Function Example

In the following example, the Excel Pricemat function is used to calculate the price per $100 face value of a security that pays interest at maturity. The security's issue date is 01-Jan-2017, the settlement date is 01-Apr-2017, and the maturity date is 31-Mar-2021. The rate of interest at issue is 4.5% and the annual yield is 2.5%. The US (NASD) 30/360 day count basis is used:

	A	B
1	Settlement Date:	01-Apr-2017
2	Maturity Date:	31-Mar-2021
3	Issue Date:	01-Jan-2017
4	=PRICEMAT( B1, B2, B3, 4.5%, 2.5% )

The above Pricemat function returns the value 107.1704545.

I.e. the price of security with the above terms would be $107.17.

Note that, in the above example:

As recommended, the settlement, maturity and issue dates have been input as references to cells containing dates;
The rate and yld arguments are input as percentages 4.5% and 2.5%. However, these arguments could, instead, be entered as the simple numerical values 0.045 and 0.025;
The [basis] argument has been omitted, and so the function uses the default value 0 (denoting the US (NADS) 30/360 day count basis).

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

Pricemat Function Errors

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

Common Errors

#NUM!

Occurs if either:

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

#VALUE!

Occurs if either:

The supplied settlement, maturity or issue arguments are not valid Excel dates

Any of the supplied arguments are non-numeric.

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