Easy Explanation Notes with Examples

DISC Function in Excel

Use

The DISC function calculates the discount rate for a security. It is a Financial function and first introduced in the Excel 2007 version.

Syntax

DISC(settlement, maturity, pr, redemption, [basis])

settlement – Required. The date on which the security was traded to the buyer.

maturity – Required. The maturity date of the security. The date on which the security expires.

pr – Required. The price of the security on the settlement date.

redemption – Required. The value to be paid by the issuer of the security to the security holder on the maturity date.

[basis] – Optional. The day count basis to be used while calculation. If omitted, Excel uses 0 by default.

Basis Day count basis
0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

 

Example

Suppose, you purchased a bond with the price of $100 on September 30, 2018. The bond will expire on January 01, 2022 with the redemption value of $110. By using the DISC function, we will find out the discount rate of the bond:

Result:

Function Error

Error Occurs
#VALUE! If the supplied settlement or maturity dates are not valid.
#NUM! If pr ≤ 0 or if redemption ≤ 0.
If basis < 0 or if basis > 4.
If settlement ≥ maturity.




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