Join Curt Frye for an in-depth discussion in this video PRICEMAT: Calculating the price of a security that pays interest at maturity, part of Excel 2010: Financial Functions.
One common type of investment is a bond that pays interest at maturity.…If you want to evaluate one of these bonds you can calculate its price per $100…of redemption value by using the PRICEMAT function.…The PRICEMAT function requires the following six bits of information.…Those are the settlement date and that is the date that you take control of the investment.…The maturity date which is the last day of the investment when all money is due…are payable, then the issue date and this is the first day that the bond was…initiated, so it's the day that it was first available for sale.…
Then the discount rate which is the interest rate applied to the bond funds.…Then the yield which is the amount of the bond pays per year.…and then finally the basis.…Basis is the way you count days in a month and in a year.…The North American standard, which would be option 0, is for a 30 day a month and…12 months a year for a 360 day year.…In this case, we are going to use option number 1 which counts actual days.…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
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