Discount rate for a security

Returns the discount rate on a security. The discount rate is used to calculate the present value of expected or future benefits and costs.

Syntax

Disc <Basis> (Settlement, Maturity, Price, Redemption)

Where:

Settlement is the settlement date. This is the date, after issue, on which the security is traded.

Maturity is the maturity date. This is the date on which the security expires.

Price is the price per $100 of face value.

Redemption is the redemption value per $100 of face value.

Basis is a parameter that indicates the time-count basis to be used. The default value for Basis is 0, which is typically used by American agencies and assumes 30-day months and 360-day years (30/360). Possible values for this parameter are listed in the following table.

Basis value	Application
0 (30/360)	Assumes 30 days in each month, 360 days in each year.
1 (actual/actual)	Assumes actual number of days in each month, actual number of days in each year.
2 (actual/360)	Assumes actual number of days in each month, 360 days in each year.
3 (actual/365)	Assumes actual number of days in each month, 365 days in each year.
4 (30/60)	Used by European agencies, assumes the same values as “0” for American institutions.

Expression

Where:

B is the number of days in a year (see Basis)

DSM is the number of days between settlement and maturity

Usage Notes

If Settlement or Maturity is not an integer, it is truncated.

• The engine returns an empty cell if
• Settlement or Maturity is not a valid date.
• Price £ 0 or Redemption £ 0.
• Settlement ³ Maturity.

The Settlement date and the Maturity date should be included within single quotations in the expression for the expression to be considered as a valid expression.