Daily DAX : Day 99 PRICEMAT
Power BI DAX Function: PRICEMAT
Description: The PRICEMAT function in DAX (Data Analysis Expressions) is used to calculate the price per $100 face value of a security that pays interest at maturity. This function is particularly useful for securities like zero-coupon bonds or other securities that do not pay periodic interest but instead pay one lump sum at maturity.
Syntax:
dax
PRICEMAT(settlement, maturity, issue, rate, yield, [basis])
settlement: The security's settlement date. This is the date after the issue date when the security is traded to the buyer.
maturity: The security's maturity or expiration date, when the principal is due to be returned.
issue: The security's issue date, the day the security was first issued.
rate: The security's interest rate at issuance.
yield: The security's annual yield.
basis (optional): The type of day count basis to use. If omitted, it defaults to 0 (NASD 30/360). Possible values are:
0 or omitted: US (NASD) 30/360
1: Actual/actual
2: Actual/360
3: Actual/365
4: European 30/360
Main Use Case:
Bond Pricing: The primary use of PRICEMAT is in financial analysis for pricing bonds or other securities where interest is paid at maturity rather than periodically. This is crucial for zero-coupon bonds where there are no interim cash flows, and all interest is accrued and paid at the end.
Investment Analysis: Investors and financial analysts use this function to compare the current market price of securities against their price at maturity, helping in making investment decisions or in portfolio management.
Financial Reporting: Companies dealing with such financial instruments might use PRICEMAT for reporting their financials more accurately, especially in scenarios where they need to show the fair value of securities on their balance sheets.
Example:
Here's an example in DAX to illustrate how you might use PRICEMAT:
dax
PRICEMAT(
DATE(2020, 1, 1), -- Settlement date
DATE(2030, 1, 1), -- Maturity date
DATE(2019, 1, 1), -- Issue date
0.05, -- Rate
0.04, -- Yield
1 -- Basis (Actual/Actual)
)
This function would return the price per $100 face value of the security based on the parameters provided.
Note: Remember, these dates should be dynamic or based on data from your model for real-life scenarios, not hardcoded as in this example. Also, ensure your dates are correctly formatted as DATE values in Power BI for accurate calculations.
Comments
Post a Comment