Evaluates the price, per $100 face value, of a security that pays periodic interest.

settlement—The date on which payment is made to settle a trade. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User’s Guide.

maturity—The date on which the bond comes due, and principal and accrued interest are paid.

rate—Annual interest rate set forth on the face of the security; the coupon rate.

yield—Annual yield of the security.

redemption—Redemption value per $100 face value of the security.

frequency—Frequency of the interest payments. It should be 1, 2, or 4.

basis—The method for computing the number of days between two dates. It should be 0, 1, 2, 3, or 4.

result—The price per $100 face value of a security that pays periodic interest. If no result can be computed, NaN is returned.

Double—If present and nonzero, double precision is used.

Function PRICE_PERIODIC computes the price per $100 face value of a security that pays periodic interest.

It is computed using the following:

In the above equation, DSC represents the number of days in the period starting with the settlement date and ending with the next coupon date. E represents the number of days within the coupon period. N represents the number of coupons payable in the timeframe from the settlement date to the redemption date. A represents the number of days in the timeframe starting with the beginning of coupon period and ending with the settlement date.

In this example, PRICE_PERIODIC computes the price of a bond that pays coupon every six months with the settlement of July 1, 1995, the maturity date of July 1, 2005, a annual rate of 6%, annual yield of 7% and redemption value of $105 using the US (NASD) 30/360 day count method.

settlement = VAR_TO_DT(1995, 7, 1)

maturity = VAR_TO_DT(2005, 7, 1)

rate = .06

yield = .07

redemption = 105.

frequency = 2

basis = 1

PRINT, PRICE_PERIODIC(settlement, maturity, rate, yield, $

   redemption, frequency, basis)

; PV-WAVE prints: 95.4067