DISC
A security's discount rate.
Group: Financial. Compatible with DAX.
Syntax
DISC ( <settlement>, <maturity>, <pr>, <redemption> [, <basis>] )| Parameter | Type | Description |
|---|---|---|
settlement | Date | The day the buyer takes the security over; later than its issue. |
maturity | Date | The day the security ends and its face value is repaid. |
pr | Number | What the buyer pays, in percent of the face value: 98.5 for 98.5 %. |
redemption | Number | What is repaid at maturity, in percent of the face value: usually 100. |
basis | Whole number optional | The day count, by number: US 30/360 (0, when left out), actual/actual (1), actual/360 (2), actual/365 (3) or European 30/360 (4). |
Returns
Number. The discount rate a year, as a decimal.
Remarks
- It is the discount as a share of the redemption, per year: (1 − pr / redemption) divided by the year fraction from settlement to maturity.
- A discount rate is quoted on the redemption, not on the price: it is lower than the
YIELDDISCof the same security. - A price or redemption of 0 or less, or settlement on or after maturity, is an error.
- The dates are taken as whole days. basis is rounded to a whole number first; outside 0 to 4 it is an error.
Examples
Commercial paper bought at 98.2
182 days on actual/360.
EVALUATE
ROW (
"Discount rate", DISC ( DATE ( 2026, 11, 2 ), DATE ( 2027, 5, 3 ), 98.2, 100, 2 ),
"Yield", YIELDDISC ( DATE ( 2026, 11, 2 ), DATE ( 2027, 5, 3 ), 98.2, 100, 2 )
)| Discount rate | Yield |
|---|---|
| 0.0356043956043956 | 0.0362570220004028 |