# PRICEMAT

The `PRICEMAT` function calculates the price per \$100 face value of a security that pays interest at maturity. It is most commonly used in financial analysis to determine the value of a security. The function takes into account the settlement date, maturity date, issue date, annual coupon rate, yield, and day count convention.

## Usage

Use the `PRICEMAT` formula with the syntax shown below, it has 5 required parameters and 1 optional parameter:

Parameters:
1. settlement (required):
The settlement date of the security. Must be a valid date.
2. maturity (required):
The maturity date of the security. Must be a valid date.
3. issue (required):
The issue date of the security. Must be a valid date.
4. rate (required):
The annual coupon rate of the security.
5. yield (required):
The yield of the security.
6. day_count_convention (optional):
Optional. The day count convention to use. If omitted, the default value is 0.

## Examples

Here are a few example use cases that explain how to use the `PRICEMAT` formula in Google Sheets.

### Calculating the price of a security

Suppose you have a security with a settlement date of 1/1/2022, a maturity date of 1/1/2024, an issue date of 1/1/2021, an annual coupon rate of 5%, and a yield of 6%. You can use `PRICEMAT` to calculate the price of the security as follows: `=PRICEMAT("1/1/2022","1/1/2024","1/1/2021",0.05,0.06)`.

### Comparing the value of securities

Suppose you have two securities with different settlement dates, maturity dates, issue dates, coupon rates, and yields. You can use `PRICEMAT` to compare the values of the securities to determine which one is more valuable.

### Analyzing the impact of changes in yield

Suppose you want to analyze how changes in yield affect the value of a security. You can use `PRICEMAT` to calculate the value of the security for different yields and create a graph to see how the value changes as the yield changes.

## Common Mistakes

`PRICEMAT` not working? Here are some common mistakes people make when using the `PRICEMAT` Google Sheets Formula:

### Incorrect date format

One common mistake when using the `PRICEMAT` function is to enter the date in the wrong format. The function requires that the date be entered as a valid date, in the format YYYY-MM-DD. If the date is entered in any other format, the function will return an error.

### Incorrect parameter order

Another common mistake when using the `PRICEMAT` function is to enter the parameters in the wrong order. The function requires that the parameters be entered in the correct order, as specified in the syntax. If the parameters are entered in the wrong order, the function will return an error.

### Invalid yield value

A third common mistake when using the `PRICEMAT` function is to enter an invalid yield value. The yield value must be greater than or equal to zero and less than or equal to the coupon rate. If an invalid yield value is entered, the function will return an error.

The following functions are similar to `PRICEMAT` or are often used with it in a formula:

• `PRICE`

The `PRICE` function calculates the price per \$100 face value of a security that pays periodic interest. It is commonly used to determine the current value of a bond. The function takes the settlement date, maturity date, annual coupon rate, yield, redemption value, and frequency of coupon payments as input. It returns the price of the security, which is the sum of the present value of the coupon payments and the present value of the redemption value.

• `PRICEDISC`

The `PRICEDISC` function in Google Sheets is a financial function that calculates the price per \$100 face value of a discounted security based on its discount rate. The function assumes that the security is sold on its maturity date and that interest is calculated on a 360-day year. The function can be used to determine the price of a US Treasury bill, commercial paper, or other money-market instrument.

• `ACCRINT`

The `ACCRINT` function calculates the accrued interest of a security that pays periodic interest. It is commonly used in financial analysis to determine the amount of interest earned but not yet paid on a security. The function takes into account the issue date, first payment date, settlement date, rate, redemption value, and frequency of interest payments. The result is the accrued interest at the settlement date.

• `YIELD`

The YIELD function calculates the yield of a security that pays periodic interest. The yield is the annualized percentage rate returned on the bond, assuming the bond is held until maturity. This function is commonly used in finance and investment analysis.

You can learn more about the `PRICEMAT` Google Sheets function on Google Support.