Microsoft Excel 2010 Expert — Question 19

You work as a Finance Manager for Blue Well Inc. The company has a Windows-based network. You are using Excel spreadsheet for maintaining the financial budget and other financial calculations. You want to return the price per $100 face value of a security that pays interest at maturity. Which of the following financial functions will you use to accomplish the task?

Answer options

• A. PRICE function
• B. PPMT function
• C. PRICEMAT function
• D. PRICEDISC function

Correct answer: C

Explanation

The correct answer is the PRICEMAT function, which specifically calculates the price of a security that pays interest at maturity. The PRICE function is used for securities that pay periodic interest, while the PPMT function calculates payment on a loan, and the PRICEDISC function is for discounted securities. Hence, they are not suitable for this particular requirement.