PRICE Function in Excel: Bond Price From Its Yield

PRICE Function in Excel: Bond Price From Its Yield featured illustration

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⏱ 2 min readUpdated 5 October 2026

FinancialLevel: ExpertAvailable in: Excel 2007+

In this article
  1. Syntax
  2. Examples
  3. Example 1
  4. PRICE in practice
  5. Where you will use it
  6. Worked example
  7. Mistakes people make
  8. Related functions
  9. Continue learning

PRICE returns a bond’s price per 100 face value. When market yield rises above the coupon, price falls below 100 — the see-saw every debt-fund investor feels.

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Syntax

=PRICE(settlement, maturity, rate, yld, redemption, frequency, [basis])
Argument What it means
rate Coupon rate.
yld Market yield.
frequency 1 annual, 2 half-yearly, 4 quarterly.

Examples

Example 1

=PRICE(DATE(2019,11,1), DATE(2029,11,1), 7%, 7.5%, 100, 2)

About 96.5 — the 7% bond trades at a discount.

PRICE in practice

Where you will use it

  • Fair price of a bond at a yield
  • Bond trading
  • Mark-to-market

Worked example

CouponYieldFormulaResult
0.080.075=ROUND(PRICE(DATE(2026,10,4),DATE(2031,3,31),A2,B2,100,2,0),2)101.87
0.070.08=ROUND(PRICE(DATE(2026,10,4),DATE(2031,3,31),A3,B3,100,2,0),2)96.29
0.090.09=ROUND(PRICE(DATE(2026,10,4),DATE(2031,3,31),A4,B4,100,2,0),2)100

Results calculated in Excel.

Mistakes people make

MistakeWhat to do instead
Price per 100Result is per 100 face value
Yield vs couponYield above coupon → price below 100

YIELD · ACCRINT

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