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How to use the PRICE Function in Excel office 365?

In this article, you will learn how to use the PRICE Function In Excel Office 365 using its basic syntax, explanation, and examples. Let’s see them below!! Get the official version of MS Excel from the following link: https://www.microsoft.com/en-in/microsoft-365/excel

PRICE Function

The PRICE function is a built-in financial function which returns the price per $100 face value of a security that pays periodic interest.

PRICE Function Syntax

=PRICE(settlement, maturity, rate, yld, redemption, frequency, [basis])
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Syntax Explanation:

  • Settlement: Settlement date of the security.
  • Maturity: Maturity date of the security. The maturity date is the date when the security expires.
  • Rate: The security’s annual coupon rate.
  • Yld: The security’s annual yield.
  • Redemption: Redemption value per $100 face value.
  • Frequency: Coupon payments per year (annual = 1, semiannual = 2; quarterly = 4.
  • basis: [optional] Day count basis.

Example1

  • Firstly, you need to create a sample data with input values.

Sample data

  • Then, you have values to calculate the bond PRICE per $100 face value of a security that pays periodic interest.
  • Now, you need to use the following formula given below.
=PRICE(B1, B2, B3, B4, B5, B6, 0)
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PRICE Function

NOTE: Dates in the formula must be entered using cell reference. Excel date format creates problems while computing results and Press Enter to get the Price.

  • After that, the formula returns the price per $100 face value of a security that pays periodic interest.

Example2

  • Firstly, you need to create a sample data with input values.

Sample data

  • Then, you have to calculate the bond PRICE per $100 face value of a security that pays periodic interest.
  • Now, you need to use the following formula given below.
=PRICE(B1, B2, B3, B4, B5, B6, 0)
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PRICE Function

NOTE: Dates in the formula must be entered using cell reference. Excel date format creates problems while computing results and Press Enter to get the Price.

  • After that, the formula returns the price per $100 face value of a security that pays periodic interest.

Check this too:

Verdict

From this chapter, you can get some clarification about how to use the PRICE Function In Excel Office 365. Let me know if you have any doubts regarding this article or any other Excel/VBA topic.

Thank you so much for visiting Geek Excel!! *If you want to learn more helpful formulas, check out Excel Formulas *!!

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