Disc

Syntax

Disc(Settlement, Maturity, Nominal, Redemption[, Basis])

Parameters

Settlement. The security's settlement date. This date is later than the issue date (the date, when the securities were sold to the buyer).

Maturity. The security's maturity date. The maturity date is the date when the security expires.

Nominal. The security's price per $100 face value. Value of this parameter must be greater than zero.

Redemption. The security's redemption price per $100 face value. Value of this parameter must be greater than zero.

Basis. The day calculation method used. It is set in the range from 0 to 4:

0. The day calculation method - American. 360 days (NSAD method). Default value.
1. Day calculation method - Actual/actual.
2. Day calculation method - Actual/360 days.
3. Day calculation method - Actual/365 days.
4. Day calculation method - European 30/360 days.

Optional parameter.

NOTE. To determine the parameter, specify either the parameter value or the cell address where it is located.

Description

It returns the discount rate for a security.

Comments

The value of the Settlement parameter must be less than value of the Maturity parameter.

The Settlement, Maturity and Basis parameters values will be truncated to integers.

The agreement date is the date when a coupon (for instance, a bond) was sold to a buyer. The payment date is the coupon expiry date. For example, a bond with duration of 30 years was issued on Jan 1, 2008 and was acquired by a buyer in 6 months after the issue date. The issue date will be January 1, 2008, the agreement date will be July 1, 2008, and the maturity date of this bond will be January 1, 2038, that is 30 years after the issue date.

The function is calculated according to the following formula:

where:

B. The number of days in a year, it depends on the selected Basis argument value.

DSM. Number of days from the Settlement calculation date to the Maturity maturity date calculated basing on 360 day year.

Example

Formula

Result

Description

=Disc("01.01.2008", "01.06.2008", 50,100,0)

1,2

Security discount based on the following terms:

The calculation date is 01.01.2008.
The maturity date is 01.06.2008.
The security's price per $100 face value is 50.
The security's redemption value per $100 face value is 100.
The used method of day calculation - American.

=Disc(A0, B0, 95,98.35,1)

0,05

Security discount based on the following terms:

The calculation date is specified in the A0 cell, value is 01.01.2007.
The maturity date is specified in the B0 cell, the value is 01.10.2007.
The security's price per $100 face value is 95.
The security's redemption value per $100 face value - 98.35.
The used method of day calculation - actual/actual.