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Berenger's perfectly matched layer absorbing boundary conditions have been applied to the prism cell time-domain method. The formulations are based on Berenger's split field equations, which are obtained by interpolation and rotation of the field components in the prism cell time-domain algorithm. To verify its accuracy, numerical experiments are conducted for extracting S-parameter of microstrip waveguide with a right-angled bend discontinuity. The present algorithm yields superior accuracy in a large chamfer degrees as compared with FDTD results.