Manuals/calci/DISC

DISC (SettlementDate,MaturityDate,Price,RedemptionValue,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
• $RedemptionValue$ is the amount to be received at maturity of a bond
• $Basis$ is the type of day count basis to use

DISC(), returns the discount rate for a security.

Description

DISC(SettlementDate, MaturityDate, Price, RedemptionValue, 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 $SettlementDate$ >= Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle MaturityDate} , Calci displays #N/A error message.
• If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Price} <=0 or Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle RedemptionValue} <=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 Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle Basis} values:

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

• If Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle 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 = Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle \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

• List of Main Z Functions

• Z3 home