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#Financial

DISC

Excel Functions

Get discount rate for a security

Syntax

EXCEL 
=DISC(settlement, maturity, pr, redemption, [basis])

Arguments

Parameter Description
settlement Settlement date of the security.
maturity Maturity date of the security.
pr Security price per $100 face value.
redemption Security redemption value per $100 face value.
basis [optional] Day count basis (see below, default =0).

Return Value

Discount rate as percentage

Details

The Excel DISC function returns the discount rate for a security. A discounted security does not pay periodic interest, but has a specified redemption value at maturity. The return on a discounted security is the difference between the price and redemption value. Discount rate is based on the concept of the time value of money. The discount rate is the interest used to convert between future value and present value. A future value can be "discounted" by a given interest rate to determine the present value. In the example shown, we want to find the discount rate for a bond with a price of $89.50 and a redemption value of $100. The settlement date is 6-Jul-2017 and the maturity date is 15-Jan-2020. The day count basis is US (NASD) 30/360. The formula in F5 is: With these inputs, the DISC fun

Examples

Example

In the example shown, we want to find the discount rate for a bond with a price of $89.50 and a redemption value of $100. The settlement date is 6-Jul

EXCEL 
=DISC(C7,C8,C5,C9,C10)
Entering dates

In Excel, dates are serial numbers. Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid da

EXCEL 
=DISC(DATE(2017,7,6),DATE(2020,1,15),89.5,100,0)

See Also

PRICEDISC