Difference between revisions of "Manuals/calci/DISC"
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(Created page with "<div id="6SpaceContent" class="zcontent" align="left"> <font color="#000000"><font face="Arial, sans-serif">'''<font size="2">DISC(settle, M, P, R, basis)</font>'''</font></f...") |
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| − | + | =DISC(SettlementDate, MaturityDate, Price, Redemption, Basis)= | |
| − | < | + | where, |
| + | *<math>SettlementDate</math> is the security's settlement date (a date when coupon or a bond is purchased) | ||
| + | *<math>MaturityDate</math> is the security's maturity date (a date when coupon or a bond expires) | ||
| + | *<math>Price</math> is the security's price per $100 face value | ||
| + | *<math>Redemption</math> is the amount to be received at maturity of a bond | ||
| + | *<math>Basis</math> is the type of day count basis to use | ||
| − | + | DISC() calculates the discount rate for a security. | |
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| − | + | == Description == | |
| + | DISC(SettlementDate, MaturityDate, Price, Redemption, Basis) | ||
| − | * < | + | *<math>SettlementDate</math> and <math>MaturityDate</math> should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message. |
| − | * < | + | *If <math>SettlementDate</math> >= <math>MaturityDate</math>, Calci displays #N/A error message. |
| − | * < | + | *If <math>Price</math> <=0 or <math>Redemption</math> <=0, Calci displays #N/A error message. |
| + | *<math>Basis</math> value is optional. If omitted, Calci assumes it to be 0. | ||
| + | Below table shows the use of <math>Basis</math> values: | ||
| − | + | {| class="wikitable" | |
| + | |- | ||
| + | ! Basis !! Description | ||
| + | |- | ||
| + | | 0 || US (NASD) 30/360 | ||
| + | |- | ||
| + | | 1 || Actual/actual | ||
| + | |- | ||
| + | | 2 || Actual/360 | ||
| + | |- | ||
| + | | 3 || Actual/365 | ||
| + | |- | ||
| + | | 4 || European 30/365 | ||
| + | |} | ||
| − | < | + | *If <math>Basis</math> 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 = <math>\frac{\(Redemption-Price)}{Redemption} X \frac{\B}{DIM} |
| − | + | == Examples == | |
| − | + | Consider the following example that shows the use of DURATION function: | |
| − | < | + | <div id="2SpaceContent" class="zcontent" align="left"> |
| − | + | {| id="TABLE3" class="SpreadSheet blue" | |
| − | + | |- class="even" | |
| − | + | | class="sshl_f" | 06/09/2010 | |
| + | | class=" " | | ||
| + | | class=" " | | ||
| − | + | |- class="odd" | |
| + | | class="sshl_f" | 11/19/2010 | ||
| + | | class=" " | | ||
| + | | class=" " | | ||
| − | + | |- class="even" | |
| − | + | | class="sshl_f" | 97.975 | |
| − | + | | class=" " | | |
| + | | class=" " | | ||
| − | + | |- class="odd" | |
| + | | class="sshl_f" | 100 | ||
| + | | class=" " | | ||
| + | | class=" " | | ||
| − | + | |- class="even" | |
| + | | class="sshl_f" | 1 | ||
| + | | class=" " | | ||
| + | | class=" " | | ||
| − | + | |- class="odd" | |
| + | | class="sshl_f" | | ||
| + | | class=" " | | ||
| + | | class=" " | | ||
| − | + | |} | |
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| − | + | =DISC(A1,A2,A3,A4,A5) displays ''0.045345092024540005'' as a result. | |
| + | |||
| − | + | == See Also == | |
| − | + | *[[Manuals/calci/INTRATE | INTRATE]] | |
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| − | + | == References == | |
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| − | + | *[http://en.wikipedia.org/wiki/Annual_effective_discount_rate Annual Discount Rate] | |
| − | + | *[http://en.wikipedia.org/wiki/Day_count_convention Day Count Basis] | |
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Revision as of 17:01, 16 January 2014
DISC(SettlementDate, MaturityDate, Price, Redemption, Basis)
where,
- is the security's settlement date (a date when coupon or a bond is purchased)
- is the security's maturity date (a date when coupon or a bond expires)
- is the security's price per $100 face value
- is the amount to be received at maturity of a bond
- is the type of day count basis to use
is the security's settlement date (a date when coupon or a bond is purchased)
is the security's maturity date (a date when coupon or a bond expires)
is the security's price per $100 face value
is the amount to be received at maturity of a bond
is the type of day count basis to useDISC() calculates the discount rate for a security.
Description
DISC(SettlementDate, MaturityDate, Price, Redemption, Basis)
- and should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
- If >= , Calci displays #N/A error message.
- If <=0 or <=0, Calci displays #N/A error message.
- value is optional. If omitted, Calci assumes it to be 0.
Below table shows the use of values:
| Basis | Description |
|---|---|
| 0 | US (NASD) 30/360 |
| 1 | Actual/actual |
| 2 | Actual/360 |
| 3 | Actual/365 |
| 4 | European 30/365 |
- If 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 = <math>\frac{\(Redemption-Price)}{Redemption} X \frac{\B}{DIM}
Examples
Consider the following example that shows the use of DURATION function:
| 06/09/2010 | ||
| 11/19/2010 | ||
| 97.975 | ||
| 100 | ||
| 1 | ||
=DISC(A1,A2,A3,A4,A5) displays 0.045345092024540005 as a result.