# How to use the PRICE Function in Excel

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

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

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

Let’s understand this function using it in an example. Here we have values to calculate the bond PRICE per \$100 face value of a security that pays periodic interest.
Use the formula:

=PRICE(B1, B2, B3, B4, B5, B6, 0) Note: Dates in the formula must be entered using cell reference. Excel date format creates problem while computing results.
Now Press Enter to get the Price The Price is \$ 94.63 .
As you can see the formula returns the price per \$100 face value of a security that pays periodic interest.

Hope you understood how to use PRICE function and referring cell in Excel. Explore more articles on Excel function here. Please feel free to state your query or feedback for the above article.

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