Manuals/calci/DISC

DISC(SettlementDate, MaturityDate, Price, Redemption, Basis)

where,

• $SettlementDate$ is the security's settlement date (a date when coupon or a bond is purchased)
• $MaturityDate$ is the security's maturity date (a date when coupon or a bond expires)
• $Price$ is the security's price per $100 face value
• $Redemption$ is the amount to be received at maturity of a bond
• $Basis$ is the type of day count basis to use

DISC() calculates the discount rate for a security.

Description

DISC(SettlementDate, MaturityDate, Price, Redemption, Basis)

• $SettlementDate$ and $MaturityDate$ should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
• If $SettlementDate$ >= $MaturityDate$, Calci displays #N/A error message.
• If $Price$ <=0 or $Redemption$ <=0, Calci displays #N/A error message.
• $Basis$ value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of $Basis$ values:

Basis	Description
0	US (NASD) 30/360
1	Actual/actual
2	Actual/360
3	Actual/365
4	European 30/365

• If $Basis$ value is other than 0 to 4, Calci displays #N/A error message.
• Formula:

If 'B' is number of days in a year, and 'DIM' is number of days from 'Settlement' to ' Maturity', the DISC is calculated as -

DISC = ${\frac {(Redemption-Price)}{Redemption}}X{\frac {B}{DIM}}$

Examples

Consider the following example that shows the use of DISC function:

06/09/2010
11/19/2010
97.975
100
1

=DISC(A1,A2,A3,A4,A5) displays 0.045345092024540005 as a result.

Related Videos

DISC

See Also

• INTRATE

References

• Annual Discount Rate
• Day Count Basis