Revision as of 04:47, 14 March 2017

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.

$SettlementDate$ 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:

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

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

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

@@ Line 95: / Line 95: @@
 *[http://en.wikipedia.org/wiki/Annual_effective_discount_rate Annual Discount Rate]
 *[http://en.wikipedia.org/wiki/Day_count_convention Day Count Basis]
+*[[Z_API_Functions | List of Main Z Functions]]
+*[[ Z3 |   Z3 home ]]