How to Use the ODDFPRICE Function in Excel
The ODDFPRICE function in Excel and Google Sheets calculates the price per $100 face value of a security that possesses an odd first period. Utilized predominantly in financial analysis and investment planning, this function is essential for valuing bonds, notes, or other securities that do not follow a standard first period.
Syntax
The syntax for the ODDFPRICE function is consistent across both Excel and Google Sheets:
ODDFPRICE(settlement, maturity, issue, first_coupon, rate, yield, redemption, frequency, [basis])- settlement: The date on which the security is bought.
- maturity: The date on which the security will mature or expire.
- issue: The date on which the security was issued.
- first_coupon: The date on which the first interest payment will be made.
- rate: The annual coupon rate of the security.
- yield: The annual yield or return of the security.
- redemption: The value at which the security will be redeemed at maturity.
- frequency: The frequency of the coupon payments per year (1 for annual, 2 for semi-annual, etc.).
- basis (optional): The day count convention for interest calculation (0 for US (NASD) 30/360, 1 for Actual/Actual, etc.).
Examples
Let’s look at an example of using ODDFPRICE in Excel:
| Input | Values |
|---|---|
| Settlement | 1-Jan-2022 |
| Maturity | 1-Jan-2025 |
| Issue | 1-Jul-2021 |
| First Coupon | 1-Jan-2023 |
| Rate | 5% |
| Yield | 4.2% |
| Redemption | $1000 |
| Frequency | 2 |
=ODDFPRICE("1/1/2022", "1/1/2025", "1/7/2021", "1/1/2023", 0.05, 0.042, 1000, 2, 0)This formula calculates the price per $100 face value of the security based on the given inputs.
The ODDFPRICE function can also be useful in comparing bonds with differing terms to maturity and coupon rates, thus aiding in making informed investment decisions.
In conclusion, the ODDFPRICE function serves as an indispensable tool for financial analysts, investors, and those engaged in the management of fixed-income securities. It assists in assessing the fair value of securities that exhibit odd first periods, thereby facilitating comprehensive investment analysis and decision-making.
More information: https://support.microsoft.com/en-us/office/oddfprice-function-d7d664a8-34df-4233-8d2b-922bcf6a69e1
Other functions
Returns the accrued interest for a security that pays periodic interest
Returns the accrued interest for a security that pays interest at maturity
Returns the depreciation for each accounting period by using a depreciation coefficient
Returns the depreciation for each accounting period
Returns the number of days from the beginning of the coupon period to the settlement date
Returns the number of days in the coupon period that contains the settlement date
Returns the number of days from the settlement date to the next coupon date
Returns the next coupon date after the settlement date
Returns the number of coupons payable between the settlement date and maturity date
Returns the previous coupon date before the settlement date
Returns the cumulative interest paid between two periods
Returns the cumulative principal paid on a loan between two periods
Returns the depreciation of an asset for a specified period by using the fixed-declining balance method
Returns the depreciation of an asset for a specified period by using the double-declining balance method or some other method that you specify
Returns the discount rate for a security
Converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number
Converts a dollar price, expressed as a decimal number, into a dollar price, expressed as a fraction
Returns the annual duration of a security with periodic interest payments
Returns the effective annual interest rate
Returns the future value of an investment
Returns the future value of an initial principal after applying a series of compound interest rates
Returns the interest rate for a fully invested security
Returns the interest payment for an investment for a given period
Returns the internal rate of return for a series of cash flows
Calculates the interest paid during a specific period of an investment
Returns the Macauley modified duration for a security with an assumed par value of $100
Returns the internal rate of return where positive and negative cash flows are financed at different rates
Returns the annual nominal interest rate
Returns the number of periods for an investment
Returns the net present value of an investment based on a series of periodic cash flows and a discount rate
Returns the yield of a security with an odd first period
Returns the price per $100 face value of a security with an odd last period
Returns the yield of a security with an odd last period
Returns the number of periods required by an investment to reach a specified value
Returns the periodic payment for an annuity
Returns the payment on the principal for an investment for a given period
Returns the price per $100 face value of a security that pays periodic interest
Returns the price per $100 face value of a discounted security
Returns the price per $100 face value of a security that pays interest at maturity
Returns the present value of an investment
Returns the interest rate per period of an annuity
Returns the amount received at maturity for a fully invested security
Returns an equivalent interest rate for the growth of an investment
Returns the straight-line depreciation of an asset for one period
Returns the sum-of-years' digits depreciation of an asset for a specified period
Returns the bond-equivalent yield for a Treasury bill
Returns the price per $100 face value for a Treasury bill
Returns the yield for a Treasury bill
Returns the depreciation of an asset for a specified or partial period by using a declining balance method
Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic
Returns the net present value for a schedule of cash flows that is not necessarily periodic
Returns the yield on a security that pays periodic interest
Returns the annual yield for a discounted security; for example, a Treasury bill
Returns the annual yield of a security that pays interest at maturity