Returns the discount rate of a security.
This function is only available if the Analysis AddIn is installed.
DISC(settlementdate; maturitydate; price; redemptionvalue; basis)
- settlementdate: the settlement (purchase) date of the security.
- maturitydate: the maturity (redemption) date of the security.
- price: the price of the security.
- redemptionvalue: the redemption value of the security.
- basis: is the calendar system to use. Defaults to 0 if omitted.
- 0 - US method (NASD), 12 months of 30 days each
- 1 - Actual number of days in months, actual number of days in year
- 2 - Actual number of days in month, year has 360 days
- 3 - Actual number of days in month, year has 365 days
- 4 - European method, 12 months of 30 days each
- DISC calculates the discount rate using this formula:
- (redemptionvalue - price) / (redemptionvalue * YEARFRAC(settlementdate; maturitydate; basis))
DISC("2007-12-21"; "2008-02-15"; 98.9; 100; 1)
- returns approximately 0.072, a discount rate of around 7.2%.
- Calc follows Excel's apparent use of YEARFRAC in calculating DISC. Both Excel and Calc calculate YEARFRAC incorrectly in certain circumstances, and these (small) errors are propagated to DISC.