Financial Function : Price

[Infinity]

When it comes to the price function, there is this act/act and act/365
Can anybody explain to me how does this work for excel.

Price(Settlement,Maturity,Rate,Yield,Redemption,Frequency,Basis)
Settlement = 31 Mar 2006
Maturity = 14 Jul 2014
Rate = 6%
Yield = 5%
Redemption = 100
Frequency = 2
Basis :
Act/365 = 3
Act/Act = 1

I am trying to do a manual calcualtion based on these 2 basis.
managed to recalculate the Act/Act but i cant do the Act/365. I believ
it has something to do with my period calcualtion.

Can anybody help me out? Thanks in advance.:

 

[chillihawk]

You will get 2 periods (1 in 2008 and 1 in 2012) where the total annual
numerator will be larger than the denominator (ie 366/365 if your
frequency was 1). This is due to the leap year. Rolling back from
your maturity date these will be 14/Jan/08 - 14/Jul/08 and 14/Jan/12 -
14/Jul/12. Set up the function to price these periods in isolation,
compare with Act/Act and that should clear up any discrepancies.