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
DISC() 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.